Management and Organization Theory

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3 Management and Organization Theory

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5 The Jossey-Bass Business & Management Series

6 The Instructor s Guide for Management and Organization Theory includes a test bank, PowerPoint slides, key terms, discussion questions, and course activities. The Instructor s Guide is available free online. If you would like to download and print out a copy of the guide, please visit: Management and Organization Theory also has a Student Guide available free online. It includes study notes and key terms. If you would like to download and print out a copy of the Student Guide, please visit:

7 Management and Organization Theory A Jossey-Bass Reader Jeffrey A. Miles

8 Copyright 2012 by John Wiley & Sons, Inc. All rights reserved. Published by Jossey-Bass A Wiley Imprint One Montgomery Street, Suite 1200, San Francisco, CA No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, , fax , or on the Web at Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, , fax , or online at Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read. Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at , outside the U.S. at , or fax Wiley also publishes its books in a variety of electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If the version of this book that you purchased references media such as CD or DVD that was not included in your purchase, you may download this material at booksupport.wiley.com. For more information about Wiley products, visit Library of Congress Cataloging-in-Publication Data Miles, Jeffrey Allen. Management and organization theory : a Jossey-Bass reader / Jeffrey A. Miles. First edition. p. cm. (The Jossey-Bass business and management reader series) Includes bibliographical references and index. ISBN (pbk); ISBN (ebk); ISBN (ebk); ISBN (ebk) 1. Management. 2. Organization. I. Title. HD31.M '501 dc Printed in the United States of America first edition PB Printing

9 Contents Acknowledgments xi Introduction 1 1 Absorptive Capacity Theory 17 2 Actor-Network Theory 25 3 Agency Theory 33 4 Agenda Setting Theory 41 5 Attachment Theory 49 6 Attribution Theory 57 7 Balance Theory 65 8 Control Theory 73 9 Diffusion of Innovations Theory Dynamic Capabilities Theory Efficient Market Theory Ethical Theory Field Theory Game Theory Goal Setting Theory Image Theory Institutional Theory Knowledge-Based Theory Media Richness Theory Mental Models Theory Organizational Ecology Theory Organizational Justice Theory Planned Behavior Theory Prospect Theory Psychological Contract Theory 209 vii

10 viii Contents 26 Resource-Based Theory Role Theory Self-Determination Theory Sensemaking Theory Social Capital Theory Social Cognitive Theory Social Comparison Theory Social Exchange Theory Social Facilitation Theory Social Identity Theory Social Network Theory Stakeholder Theory Structural Contingency Theory Structuration Theory Transaction Cost Theory 329 Conclusion 337 References 353 Name Index 429 Subject Index 447

11 To Patrick thank you so much for all your love, support, encouragement, and wisdom

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13 Acknowledgments I graciously thank Kathe Sweeney, executive editor in the business and management and public administration teams at Jossey-Bass. Kathe launched this project with great enthusiasm and energy, and she helped sustain my enthusiasm and energy throughout the project. I also thank Kathe for helping me write at speeds that I did not believe were possible for me to reach. I graciously acknowledge Lisé Johnson, executive editor at Wiley. Lisé is always so positive, optimistic, supportive, and energetic that she inspires me every time I talk with her. She is never-endingly devoted to ensuring that every one of her projects is the best that it can be; and fortunately, she has the never-ending drive and motivation to make that happen. Thank you so much to the talented editorial team at Wiley: Dani Scoville, editorial program coordinator; Nina Kreiden, senior production editor; Michele Jones, copyeditor; Xenia Lisanevich, editor; and Elizabeth Forsaith, proofreader. Their passion, enthusiasm, dedication, and conscientiousness are amazing and so inspiring. I have completely enjoyed working with them. xi

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15 Introduction The purpose of this book is to educate students, faculty members, researchers, practicing managers, and consultants about the past and future directions of the forty most important theories in the field of management and organization. Those who are new to the field can use this book as a valuable tool to learn about its depth and scope, and those who have experience with management and organization theories can refresh their knowledge about those they already know and also learn about new theories that are not in their repertoire. After reading this book you will be able to: (1) name and describe the forty most important management and organization theories; (2) know both the strengths and weaknesses of each theory; (3) conduct your own research studies by examining one or more of the hundreds of suggestions for further research presented in the book; (4) locate measures and questionnaires from online sources for measuring important variables in each theory; (5) know the five most important references for each of the theories; and (6) help your organization be more effective by applying the major concepts from each theory in your organization. Theories Theories are very useful tools that help us accomplish many important outcomes and objectives in an academic field of study. They help us to: (1) organize our thoughts and ideas about the world; (2) generate and explain relationships and interrelationships among individuals, groups, and entities; (3) improve our 1