Chapter 1 What is organizational behavior?
The best V.S. The worst co-worker. Understanding why the worst co-worker acts the way they do,
enables us to interact with such employees more effectively. Ultimately, making our work more
pleasant. Without understanding why employees act a certain way, it is difficult to find a way to change
their attitudes and behaviors at work
Organizational Behavior (OB): Field of study devoted to understanding, explaining, and ultimately
improving attitudes and behaviors of individuals and groups in organizations.
Example: Explore the relationship between learning and job performance.
Human Resource Management: Field of study that focuses on the applications of OB theories and
principles in organizations.
Example: Examine the best ways to structure training programs and promote employee learning.
Strategic Management: Field of study devoted to exploring the product choices and industry
characteristics that affect an organizations profitability.
Example: Examine the relationship between firm diversification (when a firm expands into a new
product segment) and firm profitability.
The Role of Management Theory:
Scientific Management: Using scientific methods to design optimal and efficient work processes and
Example: Study how to optimize performance of any task. (Brick layers)
Bureaucracy: An organizational form that emphasizes the control and coordination of its members
through a strict chain of command, formal rules and procedures, high specialization, and centralized
A) Division of labor with a high level of technical specialization
B) Strict chain of command (authority hierarchy) where every member reported to someone at a
higher level in the organization C) A system of formal rules and procedures that ensured consistency, impartiality and
impersonality throughout the organization
D) Decision making at the top of the organization.
Example: Rather than specifics, the concentration was on the entire organization.
Human Relations Movement: Field of study that recognizes that the psychological attributes of
individual workers and the social forces within work groups have important effects on work behaviors.
The Hawthorn Studies revealed importance of many topics.
Contemporary Management Theory recognizes the dependencies between the classical approach and
the human relations approach.
Two primary outcomes: Job performance and Organizational Commitment. Employee who performs
well and stays with the company is a solid employee.
Factors that directly affect the individual outcomes (job performance and organizational commitment).
Job satisfaction Captures what employees feel when thinking about their jobs and doing their day-to-
Stress Reflect employees psychological responses to job demands that tax or exceed their capacities.
Motivation Captures the energetic forces that drive employees work effort
Trust, justice, and ethics Reflect the degree to which employees feel that their company conducts
business with fairness, honesty and integrity.
Learning and Decision Making Deals with how employees gain job knowledge and how they use that
knowledge to make accurate judgments on the job.
Individual, Group, and Organizational Context:
If Individual mechanisms are key drivers of the primary outcomes, it is important to understand that the
mechanisms are influenced by several important contexts.
Personality, cultural values, and ability how such context influences the way we behave at work and
the kinds of tasks that interest us, and might account for our responses to events that happen on the
job. Team Characteristics and Processes Employees typically do not work alone, they work in teams led by
some formal/informal leader. These group factors shape stress, satisfaction, motivation, trust and
Power and Influence Summarize the process by which individuals attain authority over others.
Leadership styles and behaviors How leaders act and behave in their roles.
Organizational Structure How units within the firm link to other units.
Organizational Culture Captures the way things are in the organization shared knowledge about the
rules, norms and values that shape employee attitudes and behaviors.
THE VALUE OF AN INTEGRATIVE MODEL:
Serves as a guide to where you are in the book, and illustrates the topics discussed and how they relate
to one another.
Does OB Matter?
OB can help keep a product good over the long term. OB can also help a product get better in the long
Rule of One-Eighth: The belief that at best one-eighth, or 12 percent, or organizations will actually do
what is required to build profits by putting people first.
of organizations wont believe the connection between how they manage their people and the profits
of those people who do see the connection will do what many organizations have done try to make
a single change to solve their problems, not realizing that the effective management of people requires
a more comprehensive and systematic approach.
Of the firms that make comprehensive changes, only will persist with their practices long enough to
actually derive economic benefits.
HOW DO WE KNOW WHAT WE KNOW ABOUT OB?
Theory: A collection of verbal and symbolic assertions that specify how and why variables are related, as
well as the conditions in which they should (and should not) be related.
Hypotheses: Written predictions that specify relationships between variables. Data: Obtain data
Correlation: The statistical relationship between two variables; abbreviated r, it can be positive or
negative and range from 0 (no statistical relationship) to +/-1 (a perfect statistical relationship)
Meta-Analysis: A method that combines the results of multiple scientific studies by essentially
calculating a weighted average correlation across studies (with larger studies receiving more weight).