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 organization’s 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 – R