This page intentionally left blank organizational behavior Hitt_FM.indd i 8/17/10 2:48 PM This page intentionally left blank third edition organizational behavior MICHAEL A. HITT Texas A&M University C. CHET MILLER University of Houston ADRIENNE COLELLA Tulane University John Wiley & Sons, Inc. 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Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of charge return shipping label are available at www.wiley.com/go/returnlabel. Outside of the United States, please contact your local representative. ISBN 13 978-0470-52853-2 ISBN 13 978-0470-92090-9 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 Hitt_FM.indd iv 8/19/10 9:45 AM To Aunt Jinny for all of the love and support you have given us over the years. We are blessed to have you in our lives —MIKE To Laura Cardinal, who keeps the smiles and joy coming. I am indeed looking forward to our next chapter together. —CHET To Jessica and Rebecca. You make me proud and you make me smile. —ADRIENNE Hitt_FM.indd v 8/17/10 2:48 PM This page intentionally left blank about the authors Michael A. Hitt Texas A & M University Michael Hitt is currently a Distinguished Professor of Management at Texas A&M Univer- sity and holds the Joe B. Foster Chair in Business Leadership. He received his Ph.D. from the University of Colorado. Dr. Hitt has coauthored or co-edited 26 books and a uthored or coauthored many journal articles. A recent article listed him as one of the ten most cited a uthors in management over a 25-year period. The Times Higher Education listed him among the top scholars in economics, fi nance and management and tied for fi rst among manage- ment scholars with the highest number of highly cited articles. He has served on the edito- rial review boards of multiple journals and is a former editor of the Academy of Management Journal. He is the current co-editor of the Strategic Entrepreneurship Journal. He received the 1996 Award for Outstanding Academic Contributions to Competitiveness and the 1999 Award for Outstanding Intellectual Contributions to Competitiveness Research from the American Society for Competitiveness. He is a Fellow in the Academy of Management and in the Strategic Management Society, a Research Fellow in the National Entrepreneurship Consortium and received an honorary doctorate from the Universidad Carlos III de Madrid for his contributions to the fi eld. He is a former President of the Academy of Management, a Past President of the Strategic Management Society and a member of the Academy of Management Journals’ Hall of Fame. He received awards for the best article published in the Academy of Management Executive (1999), Academy of Management Journal (2000), and the Journal of Management (2006). In 2001, he received the Irwin Outstanding Educator Award and the Distinguished Service Award from the Academy of Management. In 2004, Dr. Hitt was awarded the Best Paper Prize by the Strategic Management Society. In 2006, he received the Falcone Distinguished Entrepreneurship Scholar Award from Syracuse U niversity. C. Chet Miller University of Houston Dr. C. Chet Miller is the Bauer Professor of Organizational Studies at the Bauer School of Business, University of Houston. He received his Ph.D. from the University of Texas at Austin. He also received his B.A. from the University of Texas, where he was a member of Phi Beta Kappa and a Summa Cum Laude graduate. Since working as a shift manager and subsequently completing his graduate studies, Dr. Miller has served on the faculties of Baylor University, Wake Forest University, and the University of Houston. He also has been a visiting faculty member at Cornell University and a guest instructor at Duke University. He is an active member of the Academy of Hitt_FM.indd vi 8/17/10 2:48 PM viii About the Authors Management and the Strategic Management Society. He currently serves on the editorial boards of Organization Science and Academy of Management Journal, and is a past associ- ate editor of Academy of Management Journal. Awards and honors include an outstanding young researcher award, nominations of several papers for honors, and teaching awards from multiple schools, Dr. Miller has worked with a number of managers and executives. Through management-development programs, he has contributed to the development of individuals from such organizations as ABB, Bank of America, Krispy Kreme, La Farge, Red Hat, State Farm Insurance, and the U.S. Postal Service. His focus has been change management, strate- gic visioning, and high-involvement approaches to managing people. Dr. Miller’s published research focuses on the functioning of executive teams, the design of organizational structures and management systems, and the design of strategic decision processes. His publications have appeared in Organization Science, Academy of Management Journal, Academy of Management Executive, Strategic Management Journal, Journal of Organizational Behavior, and Journal of Behavioral Decision Making. Dr. Miller teaches courses in the areas of organizational behavior, organization theory, and strategic management. Adrienne Colella Tulane University Dr. Adrienne Colella is the A.B. Freeman Professor of Doctoral Studies and Research at the A.B. Freeman School of Business at Tulane University. She has also been a faculty member at the Mays Business School, Texas A&M University and at Rutgers University. She received her Ph.D. and Masters degree from the Ohio State University in Industrial/ Organizational Psychology and her B.S. degree from Miami University. Dr. Colella is a fellow of the American Psychological Association and the Society for Industrial and Organizational Psychology, Division 14 of the APA. She will be the President of the Soci- ety of Industrial and Organizational Psychology in 2011. Dr. Colella’s main research focuses on treatment issues regarding persons with dis- abilities in the workplace and workplace accommodation. She has also published on a va- riety of other organizational behavior and human resources topics such as discrimination, pay secrecy, performance appraisal, motivation, socialization, and employee selection. Her research appears in the Journal of Applied Psychology, Personnel Psychology, Academy of Management Journal, Academy of Management Review, Research in Personnel and Hu- man Resource Management, Human Resource Management Review, Journal of A pplied Social P sychology, and the Journal of Occupational Rehabilitation, among other places. She is the editor of a Society of Industrial and Organizational Psychology Frontiers Series book on the psychology of workplace discrimination. Dr. Colella serves (or has served) on the editorial boards of Personnel Psychology, Journal of Applied Psychology, Academy of Manage- ment Journal, Journal of Organizational Behavior, Human Resource Management Review, Human Performance, SIOP Frontier’s Series, Human Resource Management, and Journal of Management. She is an ad hoc reviewer for most other journals in the management fi eld and federal funding agencies. Her research has been funded by a variety of national, state, and university sources. Dr. Colella teaches undergraduate, masters-level, and Ph.D. level courses in Human Resource Management and Organizational Behavior. Hitt_FM.indd vi 8/17/10 2:48 PM