chap001 detailed

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Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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Chapter1What is

Organizational

Behavior?

Copyri ght 2011 by the McGraw-H il l Companies, Inc. Al l r ights reserved.McGraw-Hill/Irwin


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Learning Goals

What is the definition of organizational behavior

(OB)?

What are the two primary outcomes in studies of

OB? What factors affect the two primary OB outcomes?

Why might firms that are good at OB tend to bemore profitable?

What is the role of theory in the scientific method? How are correlations interpreted?


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Discussion Questions

Think of the worst coworker you've ever had.

What did that person do that was so bad?

Think of the best coworker you've ever had.

What did that person do that was so good?


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The Best of Coworkers, the Worst of

Coworkers

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Organizational Behavior Defined

Organizational behavior (OB) is the field of studydevoted to understanding, explaining, and ultimatelyimproving the attitudes and behaviors of individualsand groups in organizations.

Human resource managementtakes the theoriesand principles studies in OB and explores the nuts-and-bolts applications of those principles inorganizations.

Strategic managementfocuses on the productchoices and industry characteristics that affect anorganization's profitability.


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OB Foundations

Theories and concepts in OB are drawn from awide variety of disciplines

Industrial and organizational psychology

Job performance and individual characteristics

Social psychology

Satisfaction, emotions, and team processes

Sociology

Team characteristics and organizational structure

Economics

Motivation, learning, and decision making


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Integrative Model of Organizational

Behavior

Individual Outcomes

Job performance (Chapter 2)

Organizational commitment (Chapter 3)

Individual MechanismsJob satisfaction (Chapter 4)

Stress (Chapter 5)

Motivation (Chapter 6)Trust, justice, and ethics (Chapter 7)

Learning and decision making (Chapter 8)


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Individual Characteristics

Personality and cultural values (Chapter 9)

Ability (Chapter 10)

Group MechanismsTeams: characteristics and diversity (Chapter 11)

Teams: processes and communication (Chapter 12)

Leadership: power and negotiation (Chapter 13)

Leadership: styles and behaviors (Chapter 14) Organizational Mechanisms

Organizational structure (Chapter 15)

Organizational culture (Chapter 16)

Integrative Model of Organizational

Behavior, contd


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Integrative Model of OB


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Does Organizational Behavior Matter?

Resource-based view

Financial resources (revenue, equity)

Physical resources (buildings, machines,

technology)

Knowledge, decision-making, culture, ability,

wisdom

Image, culture, goodwill


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Discussion Question

Is it really the people that make some

companies more profitable than others?


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RareResources, people

Inimitable

History

A collective pool of experience, wisdom, and knowledge that

benefits the organization

Numerous small decisions

People make many small decisions day-in and day-out, week-in

and week-out

Socially complex resources

Culture, teamwork, trust, reputation

What Makes a Resource Valuable?


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What Makes a Resource Valuable?


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Research Evidence

OB practices were associated with better firmperformance

Firms that valued OB had a 19% higher survival rate thanfirms that did not value OB

Good people comprise a valuable resource for companies

There is no magic bullet OB practice one thing that,in-and-of itself, can increase profitability

Rule of one-eighth

OB on Screen

Office Space


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Survey Questions Designed to Assess High

Performance Work Practices

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Some of the 100 Best Companies to Work

For in 2009


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How Do We Know

Method of Experience People hold firmly to some beliefbecause it is consistent with their own experience andobservations.

Method of Intuition People hold firmly to some belief

because it just stands to reasonit seems obvious or self-evident.

Method of Authority People hold firmly to some beliefbecause some respected official, agency, or source has said itis so.

Method of Science People accept some belief becausescientific studies have tended to replicate that result using aseries of samples, settings, and methods.


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Scientific Studies

TheoryA collection of assertionsboth verbal and symbolic

that specify how and why variables are related, as wellas the conditions in which they should (and shouldnot) be related

Tells a story and supplies the familiar who, what,where, when, and why elements found in anynewspaper or magazine article

Hypotheses

Written predictions that specify relationships betweenvariables


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The Scientific Method

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Correlation (r)

Describes the statistical relationship between two

variables

Can be positive or negative and range from 0 (no

statistical relationship) to 1 (a perfect statistical

relationship)

Scientific Studies, contd


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Different Correlation Sizes


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Establishing Relationships

It turns out that making causal inferences

establishing that one variable really does

cause another requires establishing three

things.

The two variables are correlated.

The presumed cause precedes the presumed

effect in time.No alternative explanation exists for the

correlation.


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Notable Correlations

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Meta-analysis

The best way to test a theory is to conduct manystudies, each of which is as different as possible fromthe ones that preceded it.

Meta-analysis takes all of the correlations found instudies of a particular relationship and calculates a

weighted average (such that correlations based onstudies with large samples are weighted more thancorrelations based on studies with small samples). .50 correlation is considered strong, a .30 correlation is

considered moderate, and a .10 correlation is consideredweak.

Form the foundation for evidence-based management

a perspective that argues that scientific findings shouldform the foundation for management education, much asthey do for medical education.


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Takeaways

Organizational behavior is a field of study devoted to

understanding and explaining the attitudes and

behaviors of individuals and groups in organizations.

More simply, it focuses on whyindividuals andgroups in organizations act the way they do.

The two primary outcomes - job performance and

organizational commitment.

A number of factors affect performance and commitment,including individual mechanisms, individual characteristics,group mechanisms, and organizational mechanisms.


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Takeaways, Contd

The effective management of organizational behaviorcan help a company become more profitablebecause good people are a valuable resource.Rare

Hard to imitateHistory that cannot be bought or copied

Make numerous small decisions that cannot be observedby competitors

Create socially complex resources such as culture,

teamwork, trust, and reputation.


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Takeaways, Contd

A theory is a collection of assertions, both verbal andsymbolic, that specifies how and why variables arerelated, as well as the conditions in which they should(and should not) be related. Theories about organizationalbehavior are built from a combination of interviews,observation, research reviews, and reflection. Theoriesform the beginning point for the scientific method andinspire hypotheses that can be tested with data.

A correlation is a statistic that expresses the strength of a

relationship between two variables (ranging from 0 to 1). In OB research, a .50 correlation is consideredstrong, a .30 correlation is considered moderate, and a.10 correlation is considered weak.

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