Organizational Behavior Stephen P. Robbins & Timothy A. Judge Essentials of Organizational Behavior 13e Stephen P. Robbins & Timothy A. Judge Chapter 5 Personality and Values

Chapter 1 What Is Organizational Behavior?

After studying this chapter you should be able to: Demonstrate the importance of interpersonal skills in the workplace. Define organizational behavior (OB). Show the value to OB of systematic study. Identify the major behavioral science disciplines that contribute to OB. Demonstrate why few absolutes apply to OB. Identify the challenges and opportunities managers have in applying OB concepts. Compare the three levels of analysis in this text’s OB model. Copyright ©2016 Pearson Education, Inc.

The Importance of Interpersonal Skills Good people skills are important Good places to work have superior financial performance Developing managers’ interpersonal skills helps attract and keep high-performing employees There is a strong association between the quality of workplace relationships and employee job satisfaction, stress, and turnover Increasing OB principles can foster social responsibility awareness Since the late 1980s, business schools have recognized the link between understanding human behavior and managerial effectiveness. Managers cannot succeed on technical skills alone. They also need good people skills. Copyright ©2016 Pearson Education, Inc.

The Field of Organizational Behavior Organizational behavior studies the influence that individuals, groups, and structure have on behavior within organizations Its chief goal is to apply that knowledge toward improving an organization’s effectiveness Organizational behavior looks at how individuals, groups, and structure can influence the behavior within an organization. This study is done so that we can use the knowledge to improve organizational outcomes and thereby its effectiveness. Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc. Focal Points of OB Jobs Work Absenteeism Employment turnover Productivity Human performance Management Some key areas we will look at in this course are aspects of jobs and work and how they impact organizational effectiveness. We will also look at work aspects such as absenteeism, employee turnover, and productivity to see how various theories or practices influence these behaviors. In addition, we will look at the intersection of human performance and management and how various practices can improve performance. Copyright ©2016 Pearson Education, Inc.

Complementing Intuition with Systematic Study Intuition: your “gut feeling” explanation of behavior Systematic study improves ability to accurately predict behavior Assumes behavior is not random Fundamental consistencies underlie behavior These can be identified and modified to reflect individual differences Often our intuition leads us in the decision-making process. Our intuition relies on gut feelings, individual observation, and common sense. Although our intuition is extremely useful in the decision-making process, it does not give us the complete picture. By engaging in a systematic study of behavior we can enhance our effectiveness. It is not an either/or relationship, rather intuition and systematic study can work effectively together to predict behavior. Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc. Systematic Study Examines relationships Attempts to attribute causes and effects Bases conclusions on scientific evidence: Data is gathered under controlled conditions Data is measured and interpreted in a reasonably rigorous manner When we talk about engaging in a systematic study, we are talking about looking at relationships. By doing so, we can better determine cause and effect, and then by applying scientific evidence to our conclusions, we are better able to predict behavior. Copyright ©2016 Pearson Education, Inc.

Evidence-Based Management Evidence-based management: Bases decisions on the best available scientific evidence Complements systematic study Forces managers to become more scientific in their thinking Evidence-based management (EBM) complements systematic study by applying scientific evidence to managerial decisions. Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc. Big Data Big data: the extensive use of statistical compilation and analysis Identify persistent and predictive statistics Create targeted marketing strategies Using big data for managerial practices: Define objectives, develop theories of causality, test the theories to see which employee activities are relevant to the objectives Big data can be used together with intuition to help make decisions. Copyright ©2016 Pearson Education, Inc.

Contributing Disciplines to the OB Field Psychology Social Psychology Sociology Anthropology Micro: The Individual Macro: Groups & Organizations Organizational Behavior (OB) is interdisciplinary in nature as it is an applied behavioral science. The theory in OB relies on contributions from multiple behavioral disciplines. These disciplines include Psychology, Social Psychology, Sociology, and Anthropology. Copyright ©2016 Pearson Education, Inc.

Few Absolutes in OB Contingency Variable (Z) In American Culture Impossible to make simple and accurate generalizations Human beings are complex and diverse OB concepts must reflect situational conditions: contingency variables Contingency Variable (Z) Independent Variable (X) Dependent Variable (Y) In American Culture Boss Gives “Thumbs Up” Sign Understood as Complimenting In Iranian or Australian Cultures Understood as Insulting - “Up Yours!” There are few absolutes in organizational behavior. When making decisions you must always take into account situational factors that can change the relationship between two variables. For example, as seen in this chart one message from a boss in an American culture can mean a completely different thing in another culture. It is always important to take context into account. Copyright ©2016 Pearson Education, Inc.

Challenges and Opportunities for OB Responding to economic pressures Responding to globalization Managing workplace diversity Improving customer service Improving people skills Working in networked organizations Enhancing employee well-being at work Creating a positive work environment Improving ethical behavior In the workplace today there are many challenges and opportunities in the area of Organizational Behavior. Understanding OB has never been more important for managers as organizations are changing at a much more rapid pace than historically seen. Copyright ©2016 Pearson Education, Inc.

Responding to Economic Pressures Effective management can be just as hard, if not harder, in ‘good’ economic times as in ‘bad’ economic times Good management can be the difference between survival and failure Effective managers emphasize different skills depending on the economic situation. During ‘good’ times, managers focus on rewarding, satisfying, and retaining employees. During ‘bad’ economic times, managers need skills that help them address stress, decision making, and coping. Copyright ©2016 Pearson Education, Inc.

Responding to Globalization Increased foreign assignments Working with people from different cultures Overseeing movement of jobs to countries with low-cost labor Adapting to differing cultural and regulatory norms Organizations now exist in an environment with no national borders. As a result the manager’s job has changed. They need to have a broader perspective when making decisions. As foreign assignments increase, you will need to be able to manage a workforce that is different than what you may be used to and may bring different needs, aspirations, and attitudes to the workplace. You will also have individuals coming to work in your own country that come from different cultures, and you will need to find ways to accommodate their needs and help them assimilate to your workplace culture. You may also need to do the difficult task of moving jobs outside of your country to a country with lower labor costs. This is a difficult process logistically but also emotionally for the workers who will be losing their jobs. You will need to be aware of, and appreciate, the cultural norms in each country in which you do business. In addition, it’s important to consider country and local regulations that could affect how you do business. Copyright ©2016 Pearson Education, Inc.

Managing Workforce Diversity Workforce diversity: organizations are becoming a more heterogeneous mix of people in terms of gender, age, race, ethnicity, and sexual orientation As the borders are disappearing we are seeing more and more heterogeneity in the workplace. Managers today need to embrace diversity and find ways to manage it effectively. The changing demographics have shifted management philosophy in a way that recognizes and utilizes differences to create productivity, profitability, and welcoming cultures. Diversity poses great opportunities and challenging questions for managers and employees in all countries. Managers must recognize differences and find ways to utilize those differences to improve organizational performance. Copyright ©2016 Pearson Education, Inc.

Improving Customer Service and People Skills The majority of employees in developed nations work in service jobs They must know how to please their customers People skills are essential to success in today’s organizations Most workers in developed nations will work in service-oriented jobs. It is critical to organizational success that workers improve their customer service and people skills. Copyright ©2016 Pearson Education, Inc.

Working in Networked Organizations Managers must adapt their skills and communication styles to succeed in a networked organization As technology continues to become an integral part of organizational effectiveness, workers will find that their communication styles and needs will change as well. Managers must stay on top of what is needed to motivate workers in this environment. Copyright ©2016 Pearson Education, Inc.

Enhancing Employee Well-Being at Work The line between work and non-work has blurred and managers are increasingly dealing with conflicts that arise between work and life away from work As technology continues to become an integral part of organizational effectiveness, workers will find that their communication styles and needs will change as well. Managers must stay on top of what is needed to motivate workers in this environment. Copyright ©2016 Pearson Education, Inc.

Creating a Positive Work Environment Positive organizational scholarship: how organizations develop human strengths, foster vitality and resilience, and unlock potential Focus on what’s good about an organization, not what’s bad Positive organizational behavior is a growing interest in organizational behavior. It promotes the idea of exploiting employee strengths rather than focusing on employee limitations or weaknesses. Copyright ©2016 Pearson Education, Inc.

Improving Ethical Behavior Managers facing ethical dilemmas or ethical choices are required to identify right and wrong conduct This can be difficult in a global economy where different cultures approach decisions from different perspectives Companies promoting strong ethical missions: Encourage employees to behave with integrity Provide strong leadership that influence employee decisions to behave ethically Today’s highly competitive global economy has created a work environment in which employees may feel pressured to make poor decisions. Moreover, there is generally greater tolerance for unethical behavior. This has prompted many companies to try to help employees navigate ethical dilemmas using tools such as seminars and workshops, as well as formal codes of ethics. Copyright ©2016 Pearson Education, Inc.

Three Levels of OB Analysis Chapters 15 - 17 Chapters 9 - 14 In Organizational Behavior (OB) we utilize the representation of the world as broken down into three levels. The first level of analysis we will look at is the Individual level. At this level we look at individuals’ behavior. Next, recognizing that individuals make up groups, we analyze how group behavior occurs. Finally, organizations are made up of groups of individuals, so we analyze the organization at a systems level. Chapters 2 - 8 Plan of the Book Copyright ©2016 Pearson Education, Inc.

Implications for Managers Don’t rely on generalizations Use metrics and situational variables rather than “hunches” to explain cause-and-effect relationships Increase leadership potential by improving interpersonal skills Improve technical and conceptual skills by staying current with trends like big data Recognize the role of organizational behavior on employee work quality and productivity Use organizational behavior to help design and implement change programs, improve customer service, and address the work-life balance conflict The OB Model is critical to your understanding of how organizations behave. In the remainder of this book we will be utilizing that model to look at behavior on an individual, group, and organizational level. Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc. Keep in Mind… OB’s goal is to understand and predict human behavior in organizations Fundamental consistencies underlie behavior It is more important than ever to learn OB concepts Both managers and employees must learn to cope with temporariness Keep in mind that the goal of OB is to understand and then to predict behavior so that we can improve organizational effectiveness. This assumes there is consistency in behavior and that we can systematically study it to develop patterns that will increase the accuracy of our predictions. It is more important now, than ever before, to learn OB concepts because we are in a rapidly changing environment. Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc. Summary Demonstrated the importance of interpersonal skills in the workplace. Defined Organizational Behavior (OB). Showed the value to OB of systematic study. Identified the major behavioral science disciplines that contribute to OB. Demonstrated how few absolutes apply in OB. Identified the major challenges and opportunities managers have in applying OB concepts. Identified the three levels of analysis in OB. Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc.