Ob- study of what people think, feel, and do in and around organizations. Examines: employee behavior, decisions, perceptions, emotional responses, how individuals and teams in organizations relate to each other and their counterparts. Studies how organizations interact with external environments: particularly in the context of the employee behavior and decisions. Organizations- groups of people who work interdependently toward some purpose. History: 3500 bc- temples constructed with organized actions of many people, ancient rome- craftspeople and merchants run by elected managers, 1670- hudsons bay company created. Key features of organizations: collective entities. Made up of human beings and people interact with it in organized ways. Share materials, information, and expertise: members have a collective sense of purpose. Emerged as a distinct field in the 1940s. Plato- greek philosopher wrote about the essence of leadership. Confucius- chinese philosopher discussed the virtues of ethics and leadership. 1776- adam smith showed benefits of job specialization and division.