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Management and
Organisational
Behaviour

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Management &
Organisational
Behaviour
Eleventh Edition

Laurie J. Mullins
WITH GILL CHRISTY



Pearson Education Limited
Edinburgh Gate
Harlow CM20 2JE
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
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 2005 (print)
Eighth edition 2007 (print)
Ninth edition 2010 (print)
Tenth edition 2013 (print and electronic)
Eleventh edition published 2016 (print and electronic)
© Laurie J. Mullins 1985, 2010 (print)
© Laurie J. Mullins 2012, 2016 (print and electronic)
Chapters 4, 6 © Linda Carter and Laurie J. Mullins 1993, 2007
Chapter 5 © Linda Carter 1993, 2007
Chapter 15 © Peter Scott 2010
Chapter 16 © David Preece 1999, 2007
The right of Laurie J. Mullins to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.
The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a retrieval system, distribution or transmission in any form or by any means, electronic, mechanical, recording or otherwise, permission should be
obtained from the publisher or, where applicable, a licence permitting restricted copying in the United Kingdom should be
obtained from the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
The ePublication is protected by copyright and must not be copied, reproduced, transferred, distributed, leased, licensed
or publicly performed or used in any way except as specifically permitted in writing by the publishers, as allowed under the
terms and conditions under which it was purchased, or as strictly permitted by applicable copyright law. Any unauthorised
distribution or use of this text may be a direct infringement of the author’s and the publisher’s rights and those responsible
may be liable in law accordingly.
All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in

the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any
affiliation with or endorsement of this book by such owners.
Contains public sector information licensed under the Open Government Licence (OGL) v3.0.
/>The screenshots in this book are reprinted by permission of Microsoft Corporation.
Pearson Education is not responsible for the content of third-party internet sites.
The Financial Times. With a worldwide network of highly respected journalists, The Financial Times provides global business
news, insightful opinion and expert analysis of business, finance and politics. With over 500 journalists reporting from 50
countries worldwide, our in-depth coverage of international news is objectively reported and analysed from an independent, global perspective. To find out more, visit www.ft.com/pearsonoffer
ISBN: 978-1-292-08848-8 (print)

978-1-292-08851-8 (PDF)

978-1-292-08849-5 (eText)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Mullins, Laurie J.
Title: Management and organisational behaviour / Laurie J. Mulllins.
Description: Eleventh Edition. | New York : Pearson, 2016. | Revised edition
  of the author’s Management and organisational behaviour, 2013.
Identifiers: LCCN 2015038750 | ISBN 9781292088488
Subjects: LCSH: Organizational behavior.
Classification: LCC HD58.7 .M85 2016 | DDC 658--dc23 LC record available at />10 9 8 7 6 5 4 3 2 1
19 18 17 16 15
Front cover image: Mike Kiev © Getty Images
Print edition typeset in 10/12pt minionPro-Regular by SPi Global
Print edition printed and bound by L.E.G.O. S.p.A., Italy
NOTE THAT ANY PAGE CROSS-REFERENCES REFER TO THE PRINT EDITION

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To Pamela and for our families

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Contents in brief
Contents in detail
ix
In acknowledgement and appreciationxv
About the authorsxvi
About this bookxvii
Publisher’s acknowledgementsxxiii

Part 1

The organisational setting1


Chapter 1
Chapter 2
Chapter 3

Understanding organisational behaviour2
Approaches to organisation and management34
The organisational environment69

Part 2

The individual115

Chapter 4
Chapter 5
Chapter 6
Chapter 7

Individual differences and diversity116
Learning and development151
Perception and communication181
Work motivation and job satisfaction220

Part 3

Groups, leadership and management269

Chapter 8
Chapter 9
Chapter 10


Working in groups and teams270
Leadership in organisations311
Understanding management349

Part 4

Structure, strategy and effectiveness393

Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16

Organisation structure and design394
Technology and organisations435
Organisational control and power469
Strategy, corporate responsibility and ethics503
Organisational culture and change536
Organisational performance and development571

Appendix Review of personal skills and employability613
Glossary616
Index
626

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Contents in detail
In acknowledgement and appreciationxv
About the authorsxvi
About this bookxvii
Publisher’s acknowledgementsxxiii

Part 1
The organisational setting

1

1 Understanding organisational behaviour2
The significance of organisational behaviour3
A multidisciplinary perspective4
A framework of study6
Realities of organisational behaviour8
What is work?9
Orientations to work and the work ethic10
Social exchange theory12

The psychological contract12
The nature of human behaviour in
organisations14
Positive organisational behaviour15
The changing world of work organisations16
Management as an integrating activity18
Management and organisational behaviour
in action case study: Fred. Olsen
Cruise Lines19
Globalisation and the international context20
Is organisational behaviour culture-bound?22
Five dimensions of culture: the contribution
of Hofstede24
Cultural diversity: the contribution of
Trompenaars24
High- and low-context cultures25
The importance of organisational behaviour26
Ten key points to remember27
Review and discussion questions27
Assignment28
Personal skills and employability exercise28
Case study: Virgin Atlantic and Ryanair29
Notes and references31

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2 Approaches to organisation and
management34
Developments in management and organisational
behaviour35

The classical approach37
Scientific management38
Bureaucracy41
Evaluation of bureaucracy43
Human relations approach45
Evaluation46
Neo-human relations48
The systems approach48
Management and organisational behaviour in
action case study: ‘Vanguard Method’ for
systems thinking50
The contingency approach51
Other approaches to the study of organisations52
Decision-making approach52
Social action54
Action theory55
Postmodernism56
Relevance to management and organisational behaviour58
Value of management theory59
Conceptual thinking and management theory59
Ten key points to remember60
Review and discussion questions61
Assignment61
Personal skills and employability exercise62
Case study: Not being evil: Google63
Notes and references66

3  The organisational environment69
Perspectives of the organisation70
Private- and public-sector organisations71

Social-enterprise organisations72
Common features of organisations73
The organisation as an open system74
Analysis of work organisations78
Formal and informal organisations80
The informal organisation81
Underlying realities of work organisations83
Organisational conflict84

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x

Contents in detail

Contrasting perspectives of conflict84
Sources of conflict86
Management and organisational behaviour in
action case study: Based on real events88
The management of conflict89
Organisational stress91
Causes of stress91
Stress or pressure: is stress necessarily to be avoided?92
Coping with stress93
Work/life balance97
Is work/life balance still important?98
The workplace of the future99
Ten key points to remember101

Review and discussion questions101
Assignment102
Personal skills and employability exercise102
Case study: Grameen Bank: a business that really
helps the poor103
Notes and references105
Academic viewpoint107
Part 1 Case study
Indian Railways: lifeline to the nation

Part 2
The individual

108

115

Personal skills and employability exercise145
Case study: B&Q: the business case for diversity145
Notes and references148

5  Learning and development151
The importance and significance of learning152
A declaration on learning154
How do people learn?156
Behaviourist approach to learning156
Cognitive theories of learning159
Learning styles160
E-learning163
Knowledge management164

Talent management166
Management and organisational behaviour in
action case study: Tapping into diverse talent:
Career Watch at EY167
Creativity168
Mentoring and coaching170
Applications of learning theory to organisations173
Ten key points to remember174
Review and discussion questions174
Assignment175
Personal skills and employability exercise175
Case study: VSO176
Notes and references178

4 Individual differences and diversity116

6  Perception and communication181

Recognition of individuality117
Personality118
Uniqueness and similarities120
The big five personality factors121
Hans Eysenck122
Raymond Cattell123
Idiographic theoretical approaches123
Erik Erikson123
Complementary approaches124
Type A and Type B personalities126
Ability and intelligence127
Emotional intelligence (EI)129

Attitudes131
Testing and assessment133
Diversity in the workplace134
Business case for diversity136
Diversity management and training138
Management and organisational behaviour
in action case study: Lloyds Banking Group
Diversity Programme138
Criticisms and limitations141
Ten key points to remember143
Review and discussion questions143
Assignment144

The importance of understanding perception182
The perceptual process182
Internal factors184
Management and organisational behaviour in
action case study: Diversity Resource Handbook187
External factors188
Perceptual illusions191
Impression management193
Organisation and judgement194
Perceiving other people196
The importance of language and communication199
Non-verbal communication and body language200
Interpersonal communications203
Neuro-linguistic programming204
Transactional analysis206
Attribution theory207
Perceptual distortions and errors208

Understanding the organisational process212
Ten key points to remember213
Review and discussion questions213
Assignment214
Personal skills and employability exercise214
Case study: Behavioural economics215
Notes and references217

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Contents in detail

7  Work motivation and job satisfaction220
The significance of motivation221
Needs and expectations at work222
Money as a motivator222
Extrinsic and intrinsic motivation223
Threefold classification225
Management and organisational behaviour in
action case study: Happy and productive
workplace226
Theories of motivation226
Content theories of motivation227
Maslow’s hierarchy of needs theory228
Alderfer’s modified need hierarchy model231
Nohria’s four-drives model of motivation231

Herzberg’s two-factor theory232
McClelland’s achievement motivation theory234
Process theories of motivation235
Vroom’s expectancy theory236
The Porter and Lawler expectancy model237
Lawler’s revised expectancy model238
Implications of expectancy theories239
Equity theory of motivation240
Goal theory242
Attribution theory245
Relevance today245
Organisational behaviour modification245
Motivation of knowledge workers247
Frustration-induced behaviour248
Job satisfaction250
Comprehensive model of job enrichment252
Ten key points to remember254
Review and discussion questions255
Assignment255
Personal skills and employability exercise256
Case study: Managers and motivation257
Notes and references259
Academic viewpoint261
Part 2 Case study
Philanthropy: the resurgence of personal social
responsibility?262

Part 3
Groups, leadership and management 269
8  Working in groups and teams270

The importance and significance of groups271
Groups and teams271
Formal and informal groups273
Group values and norms274
Group cohesiveness and performance277

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xi

Membership277
Work environment279
Organisational280
Group development and maturity280
Social identity theory282
Characteristics of an effective work group283
Potential disadvantages of strong, cohesive groups284
Virtual teams285
Management and organisational behaviour in
action case study: Remote teamworking287
Role structure of the organisation287
Role conflict289
Interactions among members291
Analysis of individual behaviour293
Individual compared with group or team
performance296
Building effective teams299
Skills of successful teamwork300
Autonomous working groups300
The Margerison ‘Team Wheel’302

The role of team leader303
Ten key points to remember304
Review and discussion questions304
Assignment305
Personal skills and employability exercise305
Case study: The Red Arrows306
Notes and references308

9  Leadership in organisations311
The significance of leadership312
Leadership and management312
Approaches to leadership313
Qualities or traits approach314
Functional (or group) approach316
Styles of leadership317
Continuum of leadership behaviour318
Contingency theories of leadership320
Fiedler’s contingency model320
Vroom and Yetton contingency model322
Path–goal theory323
Readiness of the followers or group324
Transformational leadership326
Inspirational or visionary leadership327
Servant leadership329
Power and leadership influence330
The leadership relationship332
Culture as a contingent factor?333
Leadership effectiveness334
No one best form of leadership
335

Alternative views of leadership336
Management and organisational behaviour in
action case study: The Post Office – Women in
Leadership Programme337

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xii

Contents in detail

Leadership development338
Ten key points to remember341
Review and discussion questions342
Assignment342
Personal skills and employability exercise342
Case study: A change of leadership at
Barclays Bank343
Notes and references346

10 Understanding management349
The importance of management350
But what is management?351
The process of management353
Responsibility for the work of other people356
Essential nature of managerial work356
Management in private-enterprise and public-sector
organisations358

Management and organisational behaviour in
action case study: Putting the customer first in a
service organisation: cultural change at Fareham
Borough Council361
The work of a manager362
Managerial roles363
Agenda-setting and network-building364
Demands, constraints and choices
365
Importance of managerial style365
Theory X and Theory Y management367
The Managerial/Leadership Grid®369
Management systems372
Managing with and through people373
Guidance on good management376
The future of management377
Ten key points to remember379
Review and discussion questions379
Assignment380
Personal skills and employability exercise381
Case study: Is everybody happy?382
Notes and references385
Academic viewpoint386
Part 3 Case study
The Eden Project387

Part 4
Structure, strategy and effectiveness

393


11  Organisation structure and design394
The purpose and importance of structure395
Levels of organisation396
Underlying dimensions of organisation structure398

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Task and element functions399
Division of work and grouping of people400
Centralisation and decentralisation402
Principles of organisation403
Formal organisational relationships406
Project teams and matrix organisation408
Management and organisational behaviour in
action case study: Working structure: Geoplan
Spatial Intelligence Limited410
Boundaryless organisation411
Effects of a deficient organisation structure412
Organisation charts412
Variables influencing organisation structure413
Size of organisation415
Technology416
Woodward – structure and production technology416
Perrow – major dimensions of technology418
Uncertain external environment418
Burns and Stalker – mechanistic and organic
structures418
Lawrence and Lorsch – differentiation and
integration420

Evaluation of contingency approach421
Organisation structure and culture421
The changing face of the workplace422
Outsourcing424
Demand for flexibility425
Structure and organisational behaviour426
No perfect structure427
Ten key points to remember428
Review and discussion questions429
Assignment429
Personal skills and employability exercise429
Case study: John Lewis and Waitrose; distinctively
successful430
Notes and references433

12  Technology and organisations
Peter Scott435
Why study technology?436
Features of technology
436
Approaches to technology and organisation438
Decision-making processes441
Involvement of HR specialists and users of
technology445
Technology, work and organisational behaviour446
Skill, work design and job quality447
Centralisation versus decentralisation of control448
Management and organisational behaviour in
action case study: Negotiating the use of vehicletracking technology450
Social networking451


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Contents in detail

Changing relations with customers and users452
Location of work453
The nature of social interactions455
The pace and intensity of work456
The ‘digital divide’ and job security457
Implications for organisations and organisational
behaviour458
Ten key points to remember458
Review and discussion questions459
Assignment460
Personal skills and employability exercise460
Case study: How many ‘likes’ do I get for my
essay?461
Notes and references463

13  Organisational control and power469
The essence of control470
Improvement in performance471
Elements of an organisational control system472
Strategies of control in organisations475
Characteristics of an effective control system477
Power and management control478
Perspectives of organisational power481

Pluralistic approaches to power482
Financial and accounting systems of control483
Influencing skills484
Behavioural factors in control systems486
The concept of empowerment487
The manager–subordinate relationship488
Management and organisational behaviour in
action case study: The police custody officer
and empowerment490
Reasons for lack of delegation491
Systematic approach to empowerment and
delegation492
Control versus autonomy494
Ten key points to remember496
Review and discussion questions496
Assignment497
Personal skills and employability exercise498
Case study: Rogue traders499
Notes and references501

14 Strategy, corporate responsibility
and ethics503
The importance of strategy504
Organisational goals505
Objectives and policy506
Organisational ideologies and principles507
Vision and mission statements509
The profit objective – not a sufficient criterion509
Organisational values and behaviour511


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Corporate social responsibilities513
Management and organisational behaviour in
action case study: Corporate social responsibility:
Graham McWilliam, BSkyB514
Organisational stakeholders515
The UN Global Compact515
Values and ethics517
Ethics and CSR518
Ethics and corporate purpose521
Business ethics523
Codes of business conduct (or ethics)526
An integrated approach527
Ten key points to remember528
Review and discussion questions529
Assignment530
Personal skills and employability exercise530
Case study: The Fairtrade Foundation531
Notes and references534

15  Organisational culture and change536
Adapting to change537
Organisational culture537
Types of organisational culture540
Influences on the development of culture542
The cultural web543
Culture and organisational control544

The importance of culture545
National and international culture547
Case study: Brazil549
Organisational climate550
Organisational change551
Planned organisational change553
Management and organisational behaviour in
action case study: MANAGEMENT 2020555
Resistance to change557
Managing change559
Minimising problems of change560
Getting people to accept change562
Responsibilities of top management563
Ten key points to remember564
Review and discussion questions565
Assignment565
Personal skills and employability exercise566
Case study: Changing priorities: ActionAid566
Notes and references569

16  Organisational performance and
development571
The crucial role of managers572
Attributes and qualities of a manager573
The importance of management skills574
Managerial effectiveness575

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xiv

Contents in detail

Measures of effectiveness576
Management of time580
The nature of organisational effectiveness581
The learning organisation582
Total quality management584
The balanced scorecard585
Employee engagement and commitment586
Investors in People588
The EFQM Excellence Model591
Management development593
Succession planning594
Continuing professional development594
The future of management and leadership595
Management and organisational behaviour
in action case study: CEZ Distribution
Bulgaria JSC596
Organisational capabilities597

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The future of the workplace598
Successful organisations and people598
Ten key points to remember600
Review and discussion questions601
Assignment601

Personal skills and employability exercise601
Case study: Co-operatives602
Notes and references605
Academic viewpoint607
Part 4 Case study
The Timpsons – solving life’s little problems608
Appendix Review of personal skills and
employability613
Glossary616
Index
626

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In acknowledgement and
appreciation
Special tribute to my wife Pamela and family for their love, continuing support and
encouragement.

Special thanks
Thanks and gratitude to friends and colleagues Gill Christy and Peter Scott for their
invaluable contribution to the eleventh edition.
Thanks and gratitude also to:
Richard Christy
Mike Crabbe and Mike Timmins
Hugo Misselhorn
Anne Riches

Those managers who kindly gave permission to reproduce material from their
own organisations.
The team at Pearson Education including Donna Goddard, Mary Lince, Eileen
Srebernik, Rachel Gear, Simon Lake (for always being there), Jess Kneller and colleagues in marketing and sales.
Those who in a variety of ways through their friendship, interest and support have
helped with completion of this eleventh edition, including: Marlon Aquino, Di
and Mike Blyth; Jenny and Tony Hart; Lynn and Wayne Miller; Francesca Mullins;
Bryan Mundy; Christine Paterson.

Reviewers
Thanks and appreciation to the following reviewers, approached by the publishers,
for insightful and constructive comments that helped shape this eleventh edition:
John Spoerry, Jean-Anne Stewart, Colin Combe, Kathryn Thory, Nicholas Jackson,
Kevin Tennent and Claire Williams.
Laurie J. Mullins

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About the authors
Laurie Mullins was formerly a principal lecturer at the University
of Portsmouth Business School and led the Behavioural and Human
Resource Management Group. Laurie has experience of business, local
government, university administration and human resource management, and for a number of years was an instructor in the Territorial
Army. He has worked with the United Nations Association International
Service (UNAIS), Voluntary Service Overseas (VSO), ­professional and

educational bodies including UNISON Education and as external examiner for university courses and professional organisations. Laurie has
undertaken an academic exchange at the University of Wisconsin, USA, a visiting fellowship at the Royal
Melbourne Institute of Technology University, Australia and was a visiting lecturer in the Netherlands.
He is also author of Essentials of Organisational Behaviour and co-author of Hospitality Management and
Organisational Behaviour, both published by Pearson Education.
Gill Christy is a visiting lecturer in Organisational Behaviour/Human
Resource Management (OB/HRM) at Portsmouth University. She read
History at Cambridge, then trained and worked as a teacher before
moving into a career in training and personnel management, achieving
membership of the Chartered Institute of Personnel and Development
in 1990. Gill spent five years at Southampton City Council before joining Portsmouth Business School in 1992, where she became subject
leader for the OB/HRM group and served a term as Head of the Human
Resource and Marketing Management Department.

Peter Scott is a senior lecturer at the University of Portsmouth Business
School, specialising in organisational behaviour and employee relations. He has previously taught at the University of Bath and Manchester
Metropolitan University. Peter’s doctoral research was on craft skills and
advanced manufacturing technology.

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About this book
In an increasingly competitive environment, an understanding of the behaviour
and actions of people at work is of particular importance. The activities of an
organisation are directed towards the attainment of certain goals and also have

social implications. Organisational behaviour is a wide and essentially multidisciplinary field of enquiry and should not be considered in a vacuum but related to
the process of management and wider organisational context and environment.
Broadening the scope of the subject matter beyond the concerns of traditional organisational behaviour texts is a distinctive feature of this book,
which is especially suitable across a range of different but related modules,
including single or double semester units.
The underlying theme of the book is the need for effective organisational performance and development based on an understanding of the behaviour of people at
work and the role of management as an integrating activity. The concepts and ideas
presented provide a basis for contrasting perspectives on the structure, operation and
management of organisations, and interactions among people who work in them.

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 and cultural influences, and implications
for management action;
indicate ways in which organisational performance may be improved through
better understanding of effective management of people;

increase awareness of, and sensitivity to, personal skills and employability.

The comprehensive coverage and progressive presentation of contents will appeal to
students at undergraduate level or on related professional courses, and to graduate
and post-experience students who, through their course of study, wish to enhance
their knowledge and understanding of the subject area. The book will hopefully also
appeal to those aspiring to a managerial position.

Distinctive format
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.
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.

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xviii

About this book

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:


a short introduction and learning outcomes;




critical review and reflections throughout the text;



a practical management and organisational behaviour in action case study;



a pictorial concept map;



a summary of ten key points to remember;



review and discussion questions;



an assignment;



a personal skills and employability exercise;




a case study;



detailed notes and references.

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

The eleventh edition
The book retains the same underlying aims and approach that have been a hallmark
of its success. In response to clear user and reviewer feedback, there is a noticeable
reduction in the size of this edition. Based on this feedback, certain subject areas
have been integrated into other chapters to provide a more succinct format.
The book is structured in four parts with a total of sixteen chapters.
Following the revised structure, there is considerable reordering throughout.
Attention has been focused on the overall plan of the book and sequence of contents
between and within chapters. Strategy is now included in Chapter 14: ‘Strategy, corporate responsibility and ethics’. Certain chapters are renamed to reflect more accurately
their contents. Each chapter has been reworded or substantially rewritten as necessary. Words set in colour throughout the main text indicate inclusion in the Glossary.
Every effort has been made to balance a smaller text with the inclusion of new
material and additional features without detracting from the continuing appeal of
the book. These changes provide a new and fresh look while enhancing ease of
readability, which is another key feature of the book. In addition:









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There are eleven revised or completely new management and organisational
behaviour in action case studies, seven new concept maps and nine revised or
completely new assignments.
The section on personal skills and employability has been rewritten and expanded.
There are five completely new end-of-chapter exercises. There is also a review of
personal skills and employability at the end of the book.
There are now an average of ten critical review and reflections throughout each
chapter and a summary of ten key points to remember at the end of each chapter.
All end-of-chapter case studies have been revised and updated where necessary.
There are four completely new chapter case studies.

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About this book




xix

For each part of the book there is a completely new academic viewpoint.
The end-of-part integrative case studies have been revised and updated as
necessary and there is a completely new case study for Part 4.

Attention continues to be focused on design features and overall appearance to provide a manageable and attractive text with enhanced clarity and

user-friendliness.

Personal skills and employability
The Confederation for British Industry (CBI) points out that in an increasingly competitive employment market, employers are looking beyond simple academic
achievement when considering applicants for a job or internship.
Many now expect to see evidence of other skills and achievements that boost
someone’s attractiveness as a potential employee. Businesses want graduates who
not only add value but who have the skills to help transform their organization
in the face of continuous and rapid economic and technological change.
All graduates – whatever their degree disciple – need to be equipped with
employability skills.1
The UK Commission for Employment and Skills (UKCES) aims to raise UK
­ rosperity and opportunity by improving employment and skills levels across the
p
UK, benefitting individuals, employers, government and society. Recent years have
seen attention given by the government and other employment and professional
bodies to the importance of the supply and application of skills attainment for the
prosperity of the UK economy. For example, the Chartered Institute of Personnel and
Development (CIPD) points out that, for individuals, skills determine their employment and earning potential and, for the organisation, skills are vital to ­current and
future demands.2

University education and employability
One of the recommendations in a report from the Chartered Management Institute
(CMI) on the future of management and leadership is to ‘build employability
into education’. The report outlines a series of practical proposals to help embed
­practical management, enterprise and leadership experiences into the world of
­education: ‘The standing of business studies courses should be reviewed to ensure
they are relevant, attractive to young people and respected by employers and
higher education.’3
UKCES reports that higher education is well placed to play its part in helping to overcome the well-documented skills challenge: ‘Collaborations between

­employers and universities have a significant role to play in providing the supply
of highly skilled people to meet demand from businesses now and in the future.’4
GOV.UK refers to the need for a better connection to bridge the gap between education and work. Attention should be focused on ‘Real results, not exam results.
Success should be measured by a wide set of outcomes, including jobs and progression, not just qualifications.’5
The Prince’s Trust also points out the human cost of skills shortages that could
affect levels of productivity and morale among existing workforces.6

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About this book

People management and social skills
A survey report on tomorrow’s leaders suggests that managers recognise the
­potential benefits of management qualifications that help improve young people’s
practical skills. Managers were asked to select three factors with the biggest impact
on their decision-making when recruiting young people. In two-thirds of cases
managers highlight personal presentation, three out of five point to academic qualifications and half focus on an individual’s ambition: ‘This suggests that managers
are often looking at characteristics that demonstrate an individual’s potential rather
than fully fledged skills themselves.’7
Unlike technical or practical skills, social skills are more intangible. They are
­difficult to get a firm hold of, or to define and measure clearly. Social skills are often
associated as ‘soft skills’ and regarded as a natural part of human behaviour. As a
result, a common concern with attention to the skills shortage is a lack of focus
on people management, social skills and interpersonal behaviour. For example, an

important aspect of working with other people and leadership skills is an awareness
and acceptance of individual differences and diversity.

The skills imperative
The European Commission has drawn attention to ‘the skills imperative’ and points
out the importance of a skills policy to raising productivity. For the first time, skills
are part of the portfolio of a European Commissioner. The EU is promoting a ‘learnings outcome’ approach focusing on what people actually know, understand and
are able to do, no matter where and how they acquired their knowledge, skills and
competencies. Focusing on what people can actually do breaks down the divide
between the world of education and the world of work. In-demand skills include
the ability to plan and manage projects in order to achieve objectives and transversal skills such as language, problem-solving, communication, ability and willingness
to keep learning, and the ability to work with others.8

Developing your employability skills
Increasingly, graduate recruiters are placing greater emphasis on key interpersonal
and social skills, and attitudes. A first step in working harmoniously and effectively
with other people is to know and understand yourself and the skill of self-management. Reflecting honestly on your personal strengths and weaknesses should help
develop your level of competence. You cannot even begin to think of managing
other people until you can effectively manage yourself.
The continual development of employability skills as part of your university education and lifelong learning is important for:



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progressing your personal confidence and self-awareness;
developing harmonious interpersonal relationships with colleagues and external
contacts;




initial attractiveness for appointment with a potential employer;



maintaining a competent level of work performance;



enhancing work motivation and job satisfaction; and



helping to safeguard your career progression.

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About this book

xxi

Many employers have structured programmes for the continued development of
their staff. Your longer-term employment prospects will be enhanced when you are
able to demonstrate a genuine and enthusiastic commitment to your own personal
development.

Study as an aid to practice
Study is an aid to practice. An underlying aim of this book is to provide an integrated

view embracing both theory and practice. The ideas and concepts discussed provide you with opportunities to explore the underlying skills associated with management and organisational behaviour.
As you progress through your studies, reflect upon what you have read and about
the importance of social skills, including:


personal awareness and how you project yourself;



openness to diversity, equality and inclusion;



perceiving and understanding other people;



written, verbal and non-verbal communications;



social interactions with others and teamworking;



persuasiveness and leadership;



personal organisation and time management;




coping with change;



coaching and mentoring; and



working in a multicultural society.

The critical review and reflection sections throughout each chapter are controversial statements to help provoke and inspire personal reflection about areas you
have just read. Draw upon the views of your colleagues to share experiences and
test not only your assumptions and ideas, but also your skills of group interaction
and influencing 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, banks or building societies, fast food restaurants, service stations, doctors or a dentist surgery. An analytical
approach to contemporary examples from your own observations should help further 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.

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About this book

Monitor and assess your development
It is recommended strongly that you maintain a portfolio of what you have learned
in your personal development and the employability skills you have attained or
enhanced during your course of study. This can provide a useful basis of discussion
with a potential employer.
You may find it useful to assess progression of your personal skills and employability by reviewing your learning and development under the broad headings
shown in the illustration.
Self-awareness and
confidence

Relationships
with others

Communication and
presentation skills

Working in groups

and teams

Dealing with difficult
situations

ENHANCING YOUR
PERSONAL SKILLS
AND EMPLOYABILITY

Influencing others
and leadership

Coping with and
managing change

Observing ethical
behaviour

Working in multicultural
organisations

Displaying
managerial
potential

Personal skills and employability exercises
Critical self-reflection is a positive activity that can challenge narrow preconceived
thought processes, encourage creativity and provide a valuable personal learning
and development experience.
At the end of each chapter there is a personal skills and employability exercise.

This is designed to encourage you to think about further development of your social
and work-based skills.
At the end of the book is a review of features within the text that relate to employability skills. You are encouraged to examine the extent to which you have enhanced
your personal awareness and knowledge, and are better prepared to demonstrate
your employability skills and aid your career progression.

References
1. ‘Boosting employability skills’, CBI, (accessed 17 December 2014).
2. ‘Skills policy in the UK: Factsheet’, CIPD, January 2014.
3. ‘MANAGEMENT 2020: Leadership to unlock long-term growth’, The Commission on the

Future of Management and Leadership, CMI, July 2014, p. 12.
4. ‘Forging Futures: Building higher level skills through university and employer collaboration’,

UKCES, September 2014.
5. ‘Growth Through People’, UKCES, 25 November 2014.
6. ‘The Skills Crunch’, Prince’s Trust, 2014.
7. Woodman, P. and Hutchings, P. ‘Tomorrow’s Leaders’, CMI, March 2011.
8. ‘The Skills Imperative’, Social Agenda, European Commission Magazine on Employment and

Social Affairs, No. 41, July 2015, pp.14–20.

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Publisher’s acknowledgements

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

Figures
Figure 1.3 adapted from Management, 8th ed., pub. South-Western, a part of Cengage Learning, Inc. (Hellriegel, D., Slocum, J.W., Jr. and Woodman, R.W. 1998) p.6,
reproduced by permission; Figures  1.5, 3.10, 4.6, 5.5, 7.12, 10.6, 12.3, 15.6, 16.7
Copyright © 2011 The Virtual Learning Materials Workshop, Courtesy of Virtual
Learning Materials Workshop; Figure 1.7 from Organisational Behaviour: Individuals, Groups and Organisation, 4th ed., Financial Times Prentice Hall (Brooks, I. 2008)
p.272, Pearson Education Ltd; Figures 2.2, 8.3, 9.7, 14.3 Copyright © 2008 The ­Virtual
Learning Materials Workshop, Courtesy of Virtual Learning Materials Workshop;
Figure 3.1 from Human Resource Management in the Public Sector, Kwansei Gakuin
University Press (Smart, P. and Inazawa, K. 2011) p.21, reproduced with permission;
Figure 3.7 from Strategic Management, 7th ed., Pearson Education Ltd. (Lynch, R.
2015) p.73, Exhibit 3.1; Figure 3.11 from How to tackle work-related stress, publication INDG430, October (Health and Safety Executive 2009), Contains public sector
information published by the Health and Safety Executive and licensed under the
Open Government Licence; Figure 4.4 adapted from The Structure of Human Abilities (Vernon, P.E. 1950) Copyright © 1950 Methuen & Co., reproduced by permission
of Taylor & Francis Books UK; Figure 4.5 from Hay Group. Copyright © 1999 Hay
Group Limited. All rights reserved. Reproduced with permission; Figure  5.4 from
Assessment Issues in Higher Education, October, Department of Employment (Atkins,
M.J., Beattie, J. and Dockrell, W.B. 1993) p.51, Department for Employment and
Learning, Contains public sector information licensed under the Open Government
Licence v2.0; Figure  6.4 from Can You Believe Your Eyes?, Robson Books (Block,
J.R. and Yuker, H.E. 2002) p.163, reproduced with permission of Pavilion Books;
­Figure 6.7 from Introduction to Psychology, 6th ed., McGraw-Hill (King, R.A. 1979)
Figure 10.22, p.339, reproduced with permission from the author, Professor Richard
King; Figure 6.11 from Odd Perceptions (Gregory, R.L. 1986) p.71, Copyright © 1986
Methuen, reproduced by permission of Taylor & Francis Books UK; F­ igure 6.12 from
Interactive Behaviour at Work, 3rd ed., Financial Times Prentice Hall (Guirdham,
M. 2002) p.162, Pearson Education Ltd; Figure 6.13 Copyright © 2009 The Virtual
Learning Materials Workshop, Courtesy of Virtual Learning Materials Workshop;
Figure 6.14 from Nick Fitzherbert, www.fitzherbert.co.uk, reproduced with permission; Figure 7.4 reproduced with permission from Andrzej A. Huczynski and David

A. Buchanan, Organizational Behaviour, Pearson Education (eighth edition), p.293;
Figure  7.13 from Knowledge Workers: The New Management Challenge, Professional Manager, Institute of Management, November, 1994, p.13 (Tampoe, M.),
Reproduced with permission from Chartered Management Institute; Figure  7.15

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xxiv

Publisher’s acknowledgements

from J. Richard Hackman and Greg R. Oldham, Work Redesign, 1st Ed. ©1980.
Reprinted and Electronically reproduced by permission of Pearson Education, Inc.
New York; Figure 8.1 from Beyond the Team, Butterworth-Heinemann (Belbin, R.M.
2000) Copyright © 2000. Reproduced with permission from Belbin, www.belbin.
com; Figure 8.5 from Interactive Behaviour at Work, 3rd ed., Financial Times Prentice Hall (Guirdham, M. 2002) p.119, Pearson Education Ltd; Figure 9.2 from ActionCentred Leadership, Gower Press (Adair, J. 1979) p.10, Reproduced with permission
from John Adair; Figure  9.3 from How to Choose a Leadership Pattern, Harvard
Business Review, May/June 1973, p.167 (Tannenbaum, R. and Schmidt, W.H.), Copyright © 1973 by Harvard Business School Publishing Corporation; all rights reserved;
Figure  9.4 adapted from A Theory of Leadership Effectiveness, McGraw-Hill (Feidler, F.E. 1967) p.146, Reproduced with permission from Fred E. Fiedler; F­ igure 9.8
from A Good Fit is Essential, Professional Manager, Vol.15, No.3, May, p.38 (Cutler,
A. 2005), Reproduced with permission from the Chartered Management Institute
and Alan Cutler; Figure  10.2 from Management, Organisation and Employment
Strategy (Watson, T.J. 1986) p.29, Copyright © 1986 Routledge and Kegan Paul,
reproduced by permission of Taylor & Francis Books UK; Figure 10.9 from Managers Charter, />Annex-C-Managers-Charter.pdf, Contains public sector information licensed under
the Open Government Licence (OGL) v3.0. />doc/open-government-licence; Figures  11.11, 13.7 Copyright © 2012 The Virtual
Learning Materials Workshop, Courtesy of Virtual Learning Materials Workshop;
Figure  11.12 from Strategic Management, 6th ed., Financial Times Prentice Hall

(Lynch, R. 2012) p.464, Pearson Education Ltd; Figure 11.13 from Industrial Organization: Theory and Practice, 2nd ed., Oxford University Press (Woodward, J. 1980)
p.128, by permission of Oxford University Press; Figure 11.14 from Reed Business
Information, Copyright © Reed Business Information Ltd., reprinted with permission; Figure  11.15 from Gray, Organizational Behavior: Concepts and Applications,
4th ed. © 1988. Reprinted and Electronically reproduced by permission from Pearson Education Inc. New York; Figure 13.3 from Organization: Contemporary Principles and Practice, Blackwell Publishing (Child, J. 2005) p.121 © 2005 by John Child,
Reproduced with permission of Blackwell Pub in the format Republish in a book via
Copyright Clearance Center; Figure 13.4 reprinted with the permission of The Free
Press, a Division of Simon & Schuster, Inc., from A Comparative Analysis of Complex
Organizations: On Power, Involvement, and Their Correlates, Revised and Enlarged
Edition by Amitai Etzoni. Copyright © 1975 by Amitai Etzoni; copyright renewed
© 2003 Amitai Etzoni. All rights reserved; Figure 14.2 from Organisational Behaviour and Analysis, 4th ed., Financial Times Prentice Hall (Rollinson, D. 2008) p.56,
Pearson Education Ltd; Figure 15.1 from Organizational Change, 4th ed., Financial
Times Prentice Hall (Senior, B. and Swailes, S. 2010) p.161, Pearson Education Ltd;
Figure 15.2 from Organisational Behaviour and Analysis: An Integrated Approach, 4th
ed., Financial Times Prentice Hall (Rollinson, D. 2008) p.592, Pearson Education Ltd;
Figure 15.3 from Exploring Strategy, 10th ed., Pearson Education Ltd. ( Johnson, G.,
Whittington, R., Scholes, K., Angwin, D. and Regner, P. 2014) p.156; Figure 15.4 from
The Cultural Imperative: Global Trends in the 21st Century, Nicholas Brealey (Lewis,
R.D. 2007) © 2003 Richard Lewis. Reproduced by permission of Nicholas Brealey
Publishing; Figure 16.3 from Managing, Financial Times Prentice Hall (Mintzberg,
H. 2009) p.197, Reproduced by permission of Henry Mintzberg; Figure 16.6 from
Get Engaged, Management Today, April, p.40 (De Vita, E. 2007), Reproduced from

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