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MANAGEMENT AND
ORGANISATIONAL
BEHAVIOUR
THIRTEENTH EDITION
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First published in 1985 in Great Britain under the Pitman imprint (print)
Fifth edition published in 1999 by Financial Times Pitman Publishing (print)
Seventh edition published 2005 (print)
Eighth edition published 2007 (print)
Ninth edition published 2010 (print)
Tenth edition published 2013 (print and electronic)
Eleventh edition published 2016 (print and electronic)
Twelfth edition published 2019 (print and electronic)
Thirteenth edition published 2023 (print and electronic)
The rights of Laurie J. Mullins and Gary Rees to be identified as authors of this work has been asserted by them in accordance with the Copyright, Designs
and Patents Act 1988.
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form or by any means, electronic, mechanical, recording or otherwise, permission should be obtained from the publisher or, where applicable, a licence
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10 9 8 7 6 5 4 3 2 1
27 26 25 24 23
Part 1
Organisational behaviour
and work 21
1 The people–organisation relationship 22
2 The work environment 56
3 Organisational conflict and stress 90
Part 2
Focus on the individual 121
4 Personality and diversity 122
5 Learning and development 157
6 Perception and communication 190
7 Work motivation and satisfaction 227
Part 3
o us on grou s nd le dershi 269
8 Working in groups and teams 270
9 Leadership in work organisations 307
10 Managing people at work 343
Part 4
Focus on the workplace 379
11 Organisational theory and structure 380
12 Patterns of structure and workplace
design 412
13 Organisational control and power 451
Part 5
Focus on organisational
environment 485
14 Organisational culture and change 486
15 Strategy, corporate responsibility and
ethics 522
16 Organisational performance and
effectiveness 558
Behaviourist and cognitive views of learning 162 Group discussion activities 222
Behaviourist theories of learning 163 Organisational behaviour in action case
Cognitive perspective of learning 166 study 224
Socialisation 167 Chapter 6 – Personal skills and employability
How do we learn? 168 exercise 225
Action learning 171 Notes and references 226
Learning preferences 173
7 Work motivation and
E-learning 174
Knowledge management 175
satisfaction 227
Creativity 178 Overview topic map: Chapter 7 – ‘work
Mentoring and coaching 180 motivation and satisfaction’ 228
Applications of learning theory 184 The significance of motivation 229
Summary – Chapter 5 ‘Learning and Needs and expectations at work 230
development’ 185 Money as a motivator 231
Group discussion activities 186 Extrinsic and intrinsic motivation 232
Organisational behaviour in action case Three-fold classification for review of
study 187 motivation 234
Chapter 5 – Personal skills and employability Competing theories of motivation 236
exercise 187 Content theories of motivation 237
Notes and references 188 Maslow’s hierarchy of needs theory 237
Alderfer’s modified need hierarchy
6 Perception and model 241
communication 190 Nohria’s four drives model of motivation 242
Overview topic map: Chapter 6 – perception Herzberg’s two-factor theory 242
and communication 191 McClelland’s achievement motivation
theory 244
The importance of the study of perception 192
Process theories of motivation 245
The perceptual process 193
Vroom’s expectancy theory 247
Internal characteristics 197
Implications of expectancy theory 248
External influences 198
Equity theory of motivation 249
Perceptual illusions 203
Goal theory 251
Making judgements about other people 204
Relevance today of motivation
Difficulties in perceiving other people 206
theories 254
Perceptual distortions and errors 209
Organisational behaviour modification 255
Attribution theory 212
Motivation of knowledge workers 256
The importance of language and
Job satisfaction 258
communication 214
Comprehensive model of job enrichment 260
Non-verbal communication and body
language 215 Summary – Chapter 7 ‘Work motivation and
satisfaction’ 262
Impression management 219
Group discussion activities 263
Perception and interpersonal
communications 220 Organisational behaviour in action case
study 264
Understanding the organisational process 221
Chapter 7 – Personal skills and employability
Summary – Chapter 6 ‘Perception and
exercise 264
communication’ 222
Notes and references 266
9 Leadership in work
organisations 307
Overview topic map: Chapter 9 – Leadership in
work organisations 308
The significance of leadership 309
Approaches to the study of leadership 311
Qualities or traits approach 311
Functional (or group) approach 314
Part 3 Styles of leadership 315
Focus on groups Continuum of leadership behaviour 316
nd le dershi 269 Contingency theories of leadership 318
Fiedler’s contingency model 319
8 Working in groups and Vroom and Yetton contingency model 320
teams 270 Path–goal theory 321
Overview topic map: Chapter 8 – ‘working in Readiness of the followers or group 322
groups and teams’ 271 Transformational leadership 324
Importance and significance of Inspirational or visionary leadership 325
groups 272 Servant leadership 327
Formal and informal groups 274 Alternative views of leadership 328
Group values and norms 276 The leadership relationship 331
Expectations and benefits of group Culture: A contingent factor? 331
membership 278 Leadership effectiveness 332
Group cohesiveness and performance 279 Leadership development 336
Membership 280 Summary – Chapter 9 ‘Leadership in
Work environment 280 organisations’ 338
Organisational 281 Group discussion activities 338
Group development and maturity 281 Organisational behaviour in action case
Social identity theory 283 study 339
Characteristics of effective work Chapter 9 – Personal skills and employability
groups 285 exercise 340
Virtual teams 287 Notes and references 341
Interactions among group members 289
Analysis of individual behaviour 291
10 Managing people at work 343
Individual and group performance 294 Overview topic map: Chapter 10 – Managing
Building successful teams 297 people at work 344
Autonomous working groups 300 The management of people 345
Summary – Chapter 8 ‘Working in groups and What is management? 347
teams’ 302 Management in public sector
Group discussion activities 303 organisations 350
Organisational behaviour in action case Responsibility for the work of other
study 304 people 351
Chapter 8 – Personal skills and employability Managing with and through people 352
exercise 304 A looser approach to managing 355
Notes and references 305 Importance of managerial style 356
Theory X and Theory Y management 357
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From Laurie: A special tribute to my wife Pamela and families for their constant
warmth, support and encouragement with this latest edition.
Francesca Mullins, Rebekah Darvill, Abigail Voller
Di and Mike Blyth, Lynn and Wayne Miller, Christine Paterson
From Laurie and Gary: Special thanks and gratitude also to:
External reviewers
The following reviewers were approached by the publishers for their constructive
comments that have helped shape this revised new edition.
1. Stuart Wall: Cambridge International Education Centre
2. Mustafa Ozturk: Queen Mary University of London
3. Tamas Lestar: University of Winchester
4. Dr Stefano Cirella: University of Essex
Professor Gary Rees has been Head of Organisational Studies and HRM
at Portsmouth Business School since 2016. He has written three other
leading textbooks, with Paul Smith on Strategic HRM (Sage Publications),
Ray French on Strategic People Management and Development and
Organisational Behaviour with Rayner, Rumbles and French. In 2021 Gary
was awarded Chartered Companionship of the CIPD for his significant
contribution to HR Education. He is also a member of the British
Psychological Society and a Fellow of the Higher Education Academy.
Learning outcomes
After reading this chapter you should be more aware of:
• the meaning, nature and scope of • the structure, main features and contents of
organisational behaviour; the book.
• the importance of social skills and
employability;
Organisational metaphors
Developing employability skills Study an aid to practice Monitor and assess development
Distinctive format
The hidden depth of an iceberg with up to 90 per cent of total mass below the surface
Organisational behaviour is one of the most complex and perhaps least understood
academic elements of modern general management, but since it concerns the behav-
iour of people within organisations it is also one of the most central . . . its concern with
individual and group patterns of behaviour makes it an essential element in dealing
with the complex behavioural issues thrown up in the modern business world.
Source: Introduction to Module 6, Organisational Behaviour, Financial Times Mastering Management, FT Pitman
Publishing (1997), p. 216.
However much of a cliché, it is still an inescapable fact that people are the main
resource of any organisation. Without its members, an organisation is nothing; an
organisation is only as good as the people who work within it. In today’s increasingly
dynamic, global and competitive environment, understanding human behaviour at
work and effective management of the people resource is even more important for
organisational survival and success.
Vecchio (2005) suggests three reasons for studying organisational behaviour:
Organisations do not actually exist. The organisation in which you work or study is
not something you can see, hear, touch, smell, kick, kiss or throw up in the air.2
How would YOU attempt to explain the meaning, significance and scope of
organisational behaviour to a fellow student studying engineering? Why is the
understanding of the links between organisational behaviour and management
practices so important?
Explain fully what other possible considerations YOU see as important. What do
you see as the priorities for decision or action?
other people. References to the importance of skills throughout the text, together
with the exhibits, case studies and assignments should serve to stimulate your
awareness of the importance of underlying personal and employability skills
necessary for effective performance.
You are encouraged to complement your reading by drawing upon your own
observations and practical experiences. This can, of course, be from your university.
You may also have work experience, even part-time or casual employment, in other
organisations to draw upon. In addition, you will have contact with a range of other
organisations such as supermarkets, local pubs and shops, bank or building societies,
fast-food restaurants, service stations, doctors or dentist surgeries. An analytical
approach to contemporary examples from your own observations should help
further both a critical perspective and your interest in the subject area.
Bear in mind that opportunities to develop personal skills are not always
immediately apparent but embedded into your course of study. Adopt an inquisitive
and enquiring mind. Search for both good and bad examples of organisational
behaviour and people management, and the manner in which concepts and ideas
presented in this book are applied in practice. Make a point of continually observing
and thinking about the interpersonal and work-based skills exhibited. Use this
awareness and knowledge to enhance development of your own employability skills
and aid career progression.
Organisational metaphors
Organisations are complex social systems that can be defined and studied in a
number of ways. However one looks at the nature or disciplines of OB it is important
to remember as Morgan (1989) points out:
the reality of organisational life usually comprises numerous different realities.
Through the use of metaphors, Morgan (1989) provides a broad perspective on the
nature of organisations and organisational behaviour and identifies eight different
ways of viewing organisations – as machines, organisms, brains, cultures, political
systems, psychic prisons, flux and transformation, and instruments of domination.
These contrasting metaphors aid the understanding of the complex nature of
organisational life and the critical evaluation of organisational phenomena.6
Metaphors offer an interesting perspective on how to view organisations. They
provide a broader view of the dynamics of organisational behaviour and how to
manage and design organisations. However, Morgan points out that these
metaphors are not fixed categories and are not mutually exclusive. An organisation
can be a mix of each and predominantly a combination of two or three metaphors.
Furthermore, these combinations may change over a period of time.
A number of writers use metaphors to help describe organisations. For example, in
discussing the role and logic of viewing the organisation in terms of metaphors,
Drummond (2000) raises questions such as what an organisation is like and the
power of metaphors in shaping our thinking, but also points out that all metaphors
are partial and no metaphor can explain fully a particular phenomenon.7
The overt, formal aspects focus only on the tip of the iceberg (organisation). It is
just as important to focus on what you can’t see – the covert, behavioural aspects
(see Figure 1).
What metaphor would YOU use to help describe your university and/or any
other organisation with which you are familiar?
Need to
overcome
cultural
barriers
Need to end
prejudice,
discrimination
and harassment Tribalism
Globalisation
Diversified workforces
Technology Customer
(Information care becomes
Technology and everyone’s
Communication concern
High-speed
global Technology)
communications
The triumph
of the market
Global competition
The knowledge
society
Small is powerful
Learning
Organisational organisations
changes
Decline of bureaucracy
Teams Networks
Co-ordination by
More communication,
autonomy persuasion and
less authority trust
Figure 2 Factors bearing on the increased importance being placed on interpersonal skills
at work
Source: Maureen Guirdham, Interactive Behavior at Work, 3rd edition, Financial Times Prentice Hall (2002), p. 8.
Reprinted and electronically reproduced by permission of Pearson Education, Inc.
fast-changing world, the skills and capabilities of the workforce are vital to economic
sustainability and growth. Workplace skills include the ability to:
The aim of the model is interaction with other people in a way that minimises threats
and maximises rewards. The five domains have clear relevance to the work situation
discussed in later chapters, for example:
Working in
Communication and groups & teams
presentation skills
How comfortable do YOU feel about the level of your future employability
skills? How specifically do you hope to enhance your level of skills through the
study of OB?
A summary of personal skills and employability is set out in the concept map, in
Figure 4.
Personal skills and employability Improving work performance Reactive or proactive thinking and behaviour
When you need to ‘react’ you may
Skills for ... Applying the right ... Attitude - e.g. commitment, enthusiasm have lost the initiative.
Organisations - vital to meet current Developing and using new ... Skills - both soft and hard To be proactive you need to see the bigger
and future business demands. picture, what may happen ? & react in advance
Acquiring and using new ... Knowledge
Individuals - determine their employment
and earning potential. The continual development of employability skills as part of a
Developing employability skills university education and lifelong learning is important for:
Graduate recruiters are placing greater emphasis on key progressing your personal confidence and self-awareness
Working with others interpersonal and social skills, and attitudes.
developing harmonious interpersonal relationships with
People management, Social (soft) skills and Hard skills
Know and understand yourself and the skill of self-management. colleagues and external contacts
17/02/2023 10:53
Chapter 0 Your study of management and organisational behaviour 17
Distinctive format
Each chapter of the book is self-contained with appropriate cross-referencing to
other chapters. This provides a flexible approach. Selection and ordering of chapters
can be varied to suit the demands of particular courses of study or individual
interests.
The book is written with a minimum of technical terminology and the format is
clearly structured. Each chapter is supported with illustrations and practical examples
and contains:
• Learning outcomes and outline chapter contents at the start of the chapter to
help you see what you will be reading and monitor progress through the book.
• An overview topic map providing a visual representation of flow of main contents
and links with other chapters. Each map is pre-perforated for easy detachment.
The collection of maps may be helpful for study and revision purposes.
• ‘You’ critical review questions throughout the text encourage your own critical
thinking and reflection of what you have just read.
• Pictorial concept maps provide a ‘mind map’ of an important topic featured in the
chapter (you may find a similar idea helpful for your studies and revision).
• A summary of key points as a reminder of the chapter contents and an aid to
revision.
• Group discussion activities to encourage critical review and feedback, and
experience of small group discussions in an open and non-threatening
environment.
• Organisational behaviour in action case studies giving valuable insights into a
practical real-world situation, with tasks to encourage further thoughts.
• Personal skills and employability exercises with clear objectives to encourage you
to think about the personal skills you will need in your future career.
• Detailed notes and references enable you to pursue further any issues of particular
interest.
14. ‘Skills Development in the UK Workplace: Factsheet’, 18. De Bono, E. ‘The Power of Proactive Thinking’. Accessed
CIPD, 30 July 2021. Accessed at www.cipd.co.uk/ at www.management-issues.com/opinion/5883/the-
knowledge/work/skills/skills-factsheet on 17 May 2022. power-of-proactive-thinking/ on 17 May 2022.
15. ‘Forging Futures: Building Higher Level Skills through 19. Misselhorn, H. ‘Proactive Versus Reactive Thinking’ JPS
University and Employer Collaboration’, UKCES, Associates, www.jpsa.co.za, March 2017.
September 2014. 20. Rock, D. Your Brain at Work, Harper Business (2009).
16. ‘Growth Through People’, UKCES, 25 November 2014. 21. Furnham, A. ‘How to Make Yourself More
17. ‘The Skills Crunch’ Prince’s Trust, 2014. Accessed at www. mplo able The e mplo abilit Skills o the 201
princes-trust.org.uk/our-offices/searchresults?searchParam= Worker’ Insights, Chartered Management Institute, 6
skills+crunch on 17 May 2022. May 2016.