Essentials of Organizational Behavior Fourteenth Edition Chapter 1 What Is Organizational Behavior? Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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

Management and Organizational Behavior 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. The more you can learn about people and how to manage them, the better prepared you will be to be a good manager.

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 their effectiveness.

Focal Points of OB Motivation Leader behavior and power Interpersonal communication Group structures and processes Attitude development and perception Change processes Conflict and negotiation Work design Some core topics that are included in the study of OB and employment situations are motivation, leader behavior and power, and interpersonal communication. OB also includes the study of group structures and processes, attitudes development and perception, as well as change processes, conflict and negotiation, and work design. In sum, OB is the study of what people do in an organization and the way their behavior affects the organization’s performance.

Effective versus Successful Managerial Activities Traditional management Decision making, planning, controlling Communication Exchanging routine information and processing paperwork Human resources management Motivating, disciplining, managing conflict, staffing, and training Networking Socializing, politicking, and interacting with outsiders Why are some managers more effective than others? Research shows that there is a link between communication and effective management. Those managers who explain their decisions and seek information from colleagues and employees are the most effective.

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 relationship. Rather, intuition and systematic study can work effectively together to predict behavior.

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.

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.

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.

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.

Few Absolutes in OB Impossible to make simple and accurate generalizations Human beings are complex and diverse OB concepts must reflect situational conditions: contingency variables 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.

Challenges and Opportunities for OB Responding to continuing globalization Understanding workforce demographics Managing workforce diversity Impact of social media 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.

Employment Options As shown in this exhibit, today’s employment options have adapted to include new opportunities for workers.

Responding to Globalization Increased foreign assignments Working with people from different cultures Adapting to differing cultural and regulatory norms Organizations now exist in an environment with no national borders. As a result, managers' jobs have changed. They need to have a broader perspective when making decisions and be able to anticipate and adapt their approaches accordingly. As foreign assignments increase, you will need to be able to manage a workforce that is different from 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 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.

Managing Workforce Demographics Longevity Birth rates Socioeconomic conditions Other changes in the workforce We can explore what factors encourage people to make certain choices regarding their employment and how those choices are reflected in their perceptions of the workplace.

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.

Social Media Use of social media by employees Using social media to learn about employees Impact of social media on employee well-being Many organizations struggle with employees’ use of social media in the workplace.

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.

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.

Improving Ethical Behavior Managers facing ethical dilemmas or ethical choices are required to identify right and wrong conduct Companies promoting strong ethical missions: Encourage employees to behave with integrity Provide strong leadership that influences 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.

Developing an OB Model A model is an abstraction of reality – a simplified version of some real-world phenomenon Three types of variables: Inputs, processes, and outcomes Three levels of analysis Individual, group, and organizational We can develop a model of OB that defines the field – its parameters, concepts, and relationships.

Three Types of Variables The three types of variables to consider include inputs, or variables like personality, group structure, and organizational culture. These are the variables that set the stage for what occurs in an organization. The second type of variable is processes, or the actions that individuals, groups, and leaders engage in as a result of inputs and that lead to certain outcomes. Think of communication, leadership, conflict and negotiation, and power and politics. Outcomes are the key variables that you want to explain or predict. We’ll be looking at attitudes and stress, task performance, organizational citizenship behavior, and withdrawal behavior. We’ll also explore group cohesion, group functioning, productivity, and survival.

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

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.

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