Essentials of Organizational BehaviorFifteenth EditionChapte

Essentials of Organizational Behavior
Fifteenth Edition
Chapter 1
What Is Organizational Behavior?
Copyright © 2022, 2018, 2016 Pearson Education, Inc. All
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1
Learning Objectives
1.1 Define organizational behavior (OB).
1.2 Show the value of systematic study to OB.
1.3 Identify the major behavioral science disciplines that
contribute to OB.
1.4 Demonstrate why few absolutes apply to OB.
1.5 Identify managers’ challenges and opportunities in applying
OB concepts.
1.6 Compare the three levels of analysis in this text’s OB
model.
1.7 Describe the key employability skills gained from studying
OB that are applicable to other majors or future careers.
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Management and Organizational Behavior
Learning Objective 1.1
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
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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.
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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
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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.
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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
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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.
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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
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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.
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Complementing Intuition with Systematic Study Learning
Objective 1.2
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
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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.
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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
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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.
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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
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Evidence-based management (EBM) complements systematic
study by applying scientific evidence to managerial decisions.
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Big Data
Big data: the extensive use of statistical compilation and
analysis
Identify persistent and predictive statistics
Current usage: predicting events, detecting risk, and preventing
catastrophes
New trends: understanding, helping, and managing people

Artificial Intelligence (AI)
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Big data can be used together with intuition to help make
decisions.
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Contributing Disciplines to the OB Field
Psychology
Social Psychology
Sociology
Anthropology
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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.
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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
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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.
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Employment Options (Exhibit 1-2)
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As shown in this exhibit, today’s employment options have
adapted to include new opportunities for workers.
Long Description:
The details are as below:
Categories of Employment: Employed, underemployed or
underutilized, re-employed, unemployed/jobless, entrepreneur,
retired, job seeking, furloughed, and laid off.
Types of Employment: Full-time, part-time, flex-time, job
share, contingent, independent contractor, temporary, reduced
hours, and intern.
Places of Employment: Anchored in an office or a cubicle,
floating or shared space, virtual, flexible, and work from home.
Conditions of Employment: Local, expatriate, short-term
assignee, flexpatriate, international business traveler, visa
employee, and union or nonunion employee.
Compensation for Employment: Salary, hourly, overtime, bonus,
contract, time off, and benefits.
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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
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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.
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Responding to Globalization
Increasing connectedness and cooperation
Working with people from different cultures
Adapting to differing cultural and regulatory norms
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As a result of globalization, managers' jobs have changed. They
need to have a broader perspective when making decisions and
be able to anticipate and adapt their approaches accordingly.
You will likely 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.

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Managing Workforce Demographics
Longevity
Birth rates
Socioeconomic conditions
Other changes in the workforce
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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.
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Managing Workforce Diversity
Workforce diversity: organizations are becoming a more
heterogeneous mix of people in terms of gender, age, race,
ethnicity, sexual orientation, and other characteristics
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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.
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Social Media
Use of social media by employees
Using social media to learn about employees
Impact of social media on employee well-being
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Many organizations struggle with employees’ use of social
media in the workplace. Evidence-based policies can protect
employees and organizations.
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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
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As technology continues to become an integral part of
organizational effectiveness, workers have been asked to work
longer hours. They are also challenged by balancing heavy
outside commitments with work. Managing stress and burnout is
critical.
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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

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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.
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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
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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.
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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

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We can develop a model of OB that defines the field – its
parameters, concepts, and relationships.
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A Basic OB Model (Exhibit 1-3)
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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.
Long Description:
The details are as follows:
Inputs:
Individual Level: Diversity, personality, and values.
Group Level: Group structure, group roles, and team
responsibilities.
Organizational Level: Structure and culture.
Processes:
Individual Level: Emotions and moods, motivation, perception,

and decision making.
Group Level: Communication, leadership, power and politics,
and conflict and negotiation.
Organizational Level: Human resource management and change
practices.
Outcomes:
Individual Level: Attitudes and stress, task performance,
citizenship behavior, and withdrawal behavior.
Group Level: Group cohesion and group functioning.
Organizational Level: Productivity and survival.
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Three Levels of OB Analysis
The individual level
The group level
The organizational level
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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.
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Employability Skills
Critical thinking
Communication
Collaboration
Knowledge application and analysis

Social responsibility
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OB is important for all students. These career employability
skills can be expanded in an OB course to prepare students for
future careers.
Critical thinking involves purposeful and goal-directed thinking
to define and solve problems and to make decisions or form
judgments.
Communication is the effective use of oral, written, and
nonverbal communication skills for multiple purposes; effective
listening; the use of technology, and the ability to evaluate the
effectiveness of communication efforts.
Collaboration involves individuals actively working together on
a task to achieve a final product reflective of joint,
interdependent actions.
Knowledge application and analysis is the ability to learn a
concept and then apply it in another setting.
Social responsibility includes skills related to both business
ethics and corporate social responsibility.
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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
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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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Discussion Questions
What are some of the concerns you have with the use of
artificial intelligence in organizations?
A recent study found that those people who woke up in a
positive mood and then regularly accessed Facebook throughout
the day generally experienced declining moods as the day
progressed. Facebook time has also been found to be correlated
with lower satisfaction levels. How can managers address this?
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purposes and the needs of other instructors who rely on these
materials.
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