The Schildt book is widely acknowledged to be exceptionally poor.
In fact, C doesn't guarantee that a 1 will be shifted in when you right-shift a negative signed number; the result of right-shifting a negative value is implementation-defined.
However, if right-shift of a negative number is defined to shift in 1s to the highest bit positions, then on a 2s complement representation it will behave as an arithmetic shift - the result of right-shifting by N will be the same as dividing by 2N, rounding toward negative infinity.