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Chapter 1: What is Organizational Behaviour?
• Organizational behaviour is a field of study that looks at the impact of that individual,
groups, and structure have on behaviour within organizations for the purpose of
applying such knowledge toward improving an organization’s effectiveness.
• OB focuses on how to improve productivity, reduce both absenteeism and turnover, and
increase employee job satisfaction. OB also helps to understand how people can work
together more effectivity in the workplace.
• Helps to see the value of workplace diversity. It can improve quality and employee
productivity by showing managers how to empower their people, as well as how to
design and implement change programs.
• 34 percent said a job candidate’s people skills were more important than industry
experience and software proficiency
• An organization is a consciously coordinated social unit, made up of group of people
who work together on common goals
• OB is an applied behavioral science that is built upon contribution of number of
The Building Blocks of OB
• Psychology’s contributions have been mainly at the individual or micro level of analysis
o Learning, motivation, emotions, training, leadership effectiveness, job
satisfaction, individual decision making,
• Social psychology
o Behavioural change, attitude change, communication, group process, group
decision making, communication, power, conflict
o Formal organization theory, organizational change/ culture
o Organizational culture, environment, power
• Marketing has the closest overlap with OB → consumer behaviour over predicting
• Behaviour is generally predictable and the systematic study (looking at relationships,
attempting to attribute causes and effects, and basing our conclusions on scientific
evidence (data gathered) of behaviour is a means to making reasonably accurate
• Evidence-based management (EBM) complements systematic study by basing
managerial decisions on the best available scientific evidence.
• Contingency approach – OB must consider behaviour within the context in which it
• From a management point of view, understanding OB can help you manage well.
Companies ranked as best employers tend to have lower turnover, and employees want
to stay there.