Chapter 1: Organizational Behaviour and Management
What is Organizational Behaviour?
The attitudes and behaviours of individuals and groups in
Goal of Organizational Behaviour
• Help organizations become more effective
• Predicting organizational behaviour and events.
• Explaining organizational behaviour and events in
• Managing organizational behaviour.
• Employee job satisfaction
• Organizational commitment
• Organizational Behaviour is a field of study that investigates the
impact that individuals, groups, and organization-level processes
have on behaviour within organizations, for the purpose of
applying such knowledge toward improving an organization’s
• Involves translating principles based on the best scientific
evidence into organizational practices.
• Making decisions based on the best available scientific evidence
from social science and organizational research rather than
personal preference and unsystematic experience.
• The use of evidence-based management is more likely to result
in the attainment of organizational goals.
1 Why don’t Mangers Practice Evidence-Based Management?
• Discussed more generally in the Pfeffer and Sutton article
assigned for this week.
• Negative perceptions of research
• Research reports are themselves plagued by disagreements and
confusions, creating a sense of distrust and mystery about the
• One source of this problem is that the term research is used by
many to refer to various types of information that are not
acquired through the standard rigorous scientific process of
Management Practices of the Best Companies to Work for in
• Flexible work schedules
• Stock-options, profit-sharing, and bonuses
• Opportunities for learning and development
• Family assistance programs
• Career development programs
• Wellness and stress reduction programs
• Employee recognition and reward programs
Contemporary Management – The Contingency Approach
• The merits of both approaches are recognized today.
• Management approaches need to be tailored to fit the situation.
• The complexity of human behaviour means that an organizational
behaviour text cannot be a “cookbook.”
• The general answer to many of the problems in organizations is:
• Dependencies are called contingencies.
2 • The contingency approach to management recognizes that there
is no one best way to manage.
• An appropriate management style depends on the demands of
Henry Mintzberg discovered a rather complex set of roles
played by managers:
– Interpersonal roles
– Informational roles
– Decisional roles
• Fred Luthans, Richard Hodgetts, and Stuart Rosenkrantz found
that managers engage in four basic types of activities:
– Routine communication (formal sending and receiving
– Traditional management (planning, decision making,
– Networking (interaction with people outside of the
– Human resource management (motivating, reinforcing,
disciplining, punishing, managing conflict, staffing, training
and developing employees)
– All these managerial activities involve dealing with people.
Some Contemporary Management Concerns
3 • Four issues with which organizations and managers are currently
– Diversity – Local and Global
– Employee Health and Well-Being
– Talent Management and Employee Engagement
Corporate Social Responsibility (CSR)
Diversity – Local and Global
• The Canadian workforce is becoming increasingly culturally
• Many organizations have not treated certain segments of the
population fairly in many aspects of employment.
• Global business has increased and so has the need to understand
how workers and customers in other countries are diverse and
• What does diversity have to do with organizational
• Organizational behaviour is concerned with issues that have to do
with the management of a diverse workforce and how to benefit
from the opportunities that a diverse workforce provides.
Employee Health and Well-Being
• Increased concerns over job security, increasing job demands,
and work-related stress.
• Absenteeism and turnover are on the rise.
• Increasing stress levels and poorly designed jobs are major
• Negative effect on employee physical and psychological health
• Work-life conflict is a major stressor and cause of absenteeism.
• Increasing awareness of mental health problems in the
4 • Organizations have begun to focus on mental health and to
create more positive work environments.
• What does employee health and well-being have to do
with organizational behaviour?
• Organizational behaviour is concerned with creating positive work
environments that contribute to employee health and wellness.
• Two examples of this are workplace spirituality positive
organizational behaviour (POB).
Psychological Capital (PsyCap)
• An individual’s positive psychological state of development that is
characterized by self-efficacy, optimism, hope, and resilience.
• Each of the components of PsyCap are states not traits; they are
positive work-related psychological resources that can be
changed, modified, and developed.
• PsyCap is positively related to employee well-being, job
attitudes, and job performance, and negatively related to
employee anxiety, stress, and turnover intentions.
• PsyCap interventions (PCI) can be used to develop employees’
• Organizations can improve employee health and well-being by
developing employees’ PsyCap.
Talent Management and Employee Engagement
• Talent management refers to an organization’s processes for
attracting, developing, retaining, and utilizing people with the
required skills to meet current and future business needs.
• The management of talent has become a major organizational
concern that requires the involvement of all levels of
• Work engagement refers to a positive work-related state of mind
that is characterized by vigour, dedication, and absorption.
• It has been reported that only one-third of workers are engaged.
5 • Engaged workers have more positive job attitudes and higher job
• Employee engagement is considered to be key to an
organization’s success and competitiveness.
• What does talent management and employee engagement
have to do with organizational behaviour ?
• Organizational behaviour provides the means for organizations to
be designed and managed in ways that optimize the attraction,
development, retention, engagement, and performance of talent.
Corporate Social Responsibility
• Corporate social responsibility (CSR) refers to an organization
taking responsibility for the impact of its decisions and actions on
• It extends beyond the interests of shareholders to the interests
and needs of employees and the community in which it operates.
• What does a focus on social responsibility have to do with
• Many CSR issues have to do with organizational behaviour (e.g.,
treatment of employees, work-family balance, employee well-
• CSR also involves environmental, social, and governance (ESG)
issues, and a concern for the environment and green initiatives.
• An organization’s CSR activities and policies are associated with
financial performance as well as employee attitudes,
engagement, and performance.
• CSR also has implications for the recruitment and retention of
• Organizational behaviour can help organizations become more
Chapter 2: Personality and Learning
6 What Is Personality?
• The relatively stable set of psychological characteristics that
influences the way an individual interacts with his or her
environment and how he or she feels, thinks, and behaves.
• Dimensions and traits that are determined by genetic
predisposition and one’s long-term learning history.
• People have a variety of personality characteristics.
• Personality has a long history in organizational behaviour.
• The role of personality in organizational behaviour has often been
debated in what is known as the “person-situation debate”
• This has led to three approaches:
• The dispositional approach
• The situational approach
• The interactionist approach
The Dispositional Approach
• Focuses on individual dispositions and personality.
• Individuals possess stable traits or characteristics that influence
their attitudes and behaviours.
• Individuals are predisposed to behave in certain ways.
The Situational Approach
• Characteristics of the organizational setting such as rewards and
punishment influence people’s feelings, attitudes and behaviour.
• Many studies have shown that job satisfaction and other work-
related attitudes are largely determined by situational factors
such as the characteristics of work tasks.
The Interactionist Approach
• Organizational behaviour (individuals’ attitudes and behaviour) is
a function of both dispositions and the situation.
7 • To predict and understand organizational behaviour, we need to
know something about an individual’s personality and the work
• The interactionist approach is the most widely accepted
perspective within organizational behaviour.
Personality and the Situation
• Situations can be described as being either “weak” or “strong”.
• In weak situations, roles are loosely defined, there are few rules
and weak reinforcement and punishment contingencies.
• Personality has the strongest effect in weak situations.
• In strong situations, the roles, rules, and contingencies are more
• Personality has less of an impact in strong situations.
• The extent to which personality influences people’s attitudes and
behaviour depends on the situation.
Trait Activation Theory
• Personality traits lead to certain behaviours only when the
situation makes the need for the trait salient.
• Personality influences people’s behaviour when the situation calls
for a particular personality characteristic.
Implications of the Interactionist Approach
• Some personality characteristics are useful in certain
• There is no one best personality.
• Managers need to appreciate the advantages of employee
• The importance of fit - putting the right person in the right job,
group, or organization.
The Five-Factor Model of Personality (AKA. Big Five or OCEAN)
8 • Five basic but general dimensions that describe personality:
– Emotional stability/neuroticism
– Openness to experience
Extraversion and OB
• Important for jobs that require interpersonal interaction and
where being sociable, assertive, energetic, and ambitious is
important for success.
• High extraversion E.g. Managers, or Salespeople
Emotional stability/neuroticism and OB
• Persons high on emotional stability will have more effective
interactions with co-workers and customers as they tend to be
more clam and secure.
Agreeableness and OB
• Contributes to job performance in jobs that require interaction
and involve helping, cooperating, and nurturing others as well as
in jobs that involve teamwork and cooperation.
Conscientiousness and OB
• Important for job performance on most jobs given the tendency
towards hard work and achievement.
Openness to Experience and OB
• Important for jobs that involve learning and creativity given the
tendency to be intellectual, curious, and imaginative and have
The Five-Factor Model of Personality: Research
• Each of the “Big Five” dimensions is related to job performance
and organizational citizenship behaviours.
9 • Best predictors of job performance depends on the occupation.
• Conscientiousness is the strongest predictor of overall job
performance across all occupations.
• The “Big Five” are also related to:
• Retention and attendance.
• Counterproductive behaviours, unsafe work behaviour and
• Work motivation, job satisfaction, and life satisfaction.
• Team behaviours such as cooperation.
• Career success.
Locus of Control
• A set of beliefs about whether one’s behaviour is controlled
mainly by internal or external factors.
• Internals believe that the opportunity to control their own
behaviour resides within themselves.
• Externals believe that external forces determine their behaviour.
The Internal/External Locus of Control Continuum
10 Locus of Control: Research
• Internals are more satisfied with their jobs, more committed to
their organization, earn more money, and achieve higher
• Internals perceive less stress, cope with stress better and
experience less burnout, and engage in more careful career
• Internals are less likely to be absent from work and are more
satisfied with their lives.
• The extent to which people observe and regulate how they
appear and behave in social settings and relationships.
• High self-monitors take great care to observe and control the
images that they project.
• High self-monitors show concern for socially appropriate
emotions and behaviours, and tune into social and interpersonal
11 cues; they regulate their behaviour and self-presentation
according to these cues.
• High self-monitors gravitate to jobs that require role-playing and
the use of their self-presentation skills.
• High self-monitors are more involved in their jobs, perform
better, and are more likely to emerge as leaders.
• High self-monitors experience more role stress and show less
commitment to their organization.
• High self-monitors are not comfortable in ambiguous social
settings in which it is hard to determine what behaviours are
• Dealing with unfamiliar cultures might provoke stress.
• The degree to which a person has a positive self-evaluation.
• People with high self-esteem have favourable self-images.
• People with low self-esteem have unfavourable self-images.
Self-Esteem and Behavioural Plasticity Theory
• People with low self-esteem tend to be more susceptible to
external and social influences than those who have high self-
• Events and people in organizations have more impact on the
beliefs and actions of employees with low self-esteem.
• Employees with low self-esteem react badly to negative feedback
– it lowers subsequent performance.
• People with high self-esteem make more fulfilling career
decisions and have higher job satisfaction and job performance.