1. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. What Is Organizational Behavior? Chapter 1

2. 1-2 What is Organizational Behavior? A field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations

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4. 1-4 Buying the Textbook Aside from your local bookstore, the book is available on Amazon There is a Kindle version

5. 1-5 Does OB Matter? Do firms who do a good job managing OB concepts become more profitable as a result?

6. 1-6 Does OB Matter? The resource-based view of the firm

7. 1-7 Does OB Matter?

8. 1-8 Does OB Matter? Retention Sales/employee Market value Profitability

9. 1-9 So What’s So Hard? ๏ The Rule of 1/8: ๏ “One must bear in mind that 1/2 of organizations won’t believe the connection between how they manage their people and the profits they earn. 1/2 of those who do see the connection will do what many organizations have done--try to make a single change to solve their problems, not realizing that the effective management of people requires a more comprehensive and systematic approach. Of the firms that make comprehensive changes, probably only about 1/2 will persist with their practices long enough to actually derive economic benefits.”

10. 1-10 How Do We Know Things About OB? Where does the knowledge in this textbook come from? Understanding that requires an understanding of how we know things, in general

11. 1-11 How Do We Know Things about OB? Methods of Knowing ๏ Experience ๏ Intuition ๏ Authority ๏ Science What are the benefits of the last one, relative to the other three?

12. 1-12 How Do We Know Things about OB? Scientific method

13. 1-13 How Do We Know Things about OB? Theory ๏ A collection of assertions (both verbal and symbolic) that specify how and why variables are related, as well as the conditions in which they should (and should not) be related

14. 1-14 How Do We Know Things about OB? To test our theory we gather data on the variables included in our hypotheses We then use variants of the correlation coefficient to test hypotheses, to see if they verify our theory

15. 1-15 How Do We Know Things about OB? The correlation ๏ Perfect positive relationship: 1 ๏ Perfect negative relationship: -1 ๏ Strength of the correlation inferred from judging the compactness of a scatterplot of the X-Y values ๏ More compact = stronger correlation ๏ Less compact = weaker correlation

16. 1-16 The Correlation

17. 1-17 The Correlation

18. 1-18 The Correlation

19. 1-19 The Correlation Important Disclaimer ๏ Correlation does not prove causation Proving causation requires: ๏ Correlation ๏ Temporal precedence ๏ Elimination of alternative explanations

20. 1-20 How Do We Know Things about OB? The correlations from multiple studies get averaged together using a technique called meta-analysis Meta-analyses can then form the foundation for evidence-based management--the use of scientific findings to inform management education and practice