Essentials of Organizational Behavior Fourteenth Edition Chapter 1

After studying this chapter you should be able to: 1. Define organizational behavior (OB). 2. Show the value of systematic study to OB. 3. Identify the major behavioral science disciplines that contribute to OB. 4. Demonstrate why few absolutes apply to OB. 5. Identify managers’ challenges and opportunities in applying OB concepts. 6. Compare three levels of analysis in this text’s OB model. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Focal Points of OB 1. 2. 3. 4. 5. 6. 7. 8. Motivation Leader behavior and power Interpersonal communication Group structures and processes Attitude development and perception Change processes Conflict and negotiation Work design Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 theories to see which employee activities are relevant to the objectives Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Contributing Disciplines to the OB Field Micro: The Individual Psychology Social Psychology Macro: Groups & Organizations Sociology Anthropology Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Challenges and Opportunities for OB 1. 2. 3. 4. 5. 6. 7. 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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Employment Options Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Responding to Globalization • Increased foreign assignments • Working with people from different cultures • Adapting to differing cultural and regulatory norms Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Managing Workforce Demographics • • Longevity Birth rates Socioeconomic conditions Other changes in the

Managing Workforce Diversity • Workforce diversity: organizations are becoming a more heterogeneous mix of people in terms of gender, age, race, ethnicity, and sexual orientation Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Social Media • Use of social media by employees • Using social media to learn about employees • Impact of social media on employee well-being Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Three Types of Variables Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights

Three Levels of OB Analysis Chapters 15 - 17 Chapters 9 - 14 Chapters

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 Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.