Essentials of Organizational BehaviorFourteenth EditionChapt.docx

Essentials of Organizational Behavior
Fourteenth Edition
Chapter 1
What Is Organizational Behavior?
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
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1
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.
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2
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
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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.
3
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.
4
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.
5
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.
6
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
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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 relationship. Rather, intuition and systematic
study can work effectively together to predict behavior.
7
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.
8
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.
9
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
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Big data can be used together with intuition to help make
decisions.
10
Contributing Disciplines to the OB Field
Micro:
The Individual
Macro:
Groups &
Organizations
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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.
11
Psychology
Social Psychology
Sociology
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
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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.
12
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.

13
Employment Options
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As shown in this exhibit, today’s employment options have
adapted to include new opportunities for workers.
14
Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Adapting to differing cultural and regulatory norms
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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.
15
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.
16
Managing Workforce Diversity
Workforce diversity: organizations are becoming a more
heterogeneous mix of people in terms of gender, age, race,
ethnicity, and sexual orientation
Rights Reserved.
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.
17
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.
18
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 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.
19
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

Rights Reserved.
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.
20
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.
21
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.
22
Three Types of Variables
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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.
23
Three Levels of OB Analysis
Chapters 15 - 17
Chapters 9 - 14
Chapters 2 - 8
Plan of the Book

Rights Reserved.
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.
24
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
Rights Reserved.
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.
25
Copyright

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26
DB8960 Capstone Project: Project Discovery Activity Template
Global Operations and Supply Chain Management
Student’s Name
Project Discovery Activity: Complete all Steps (1.0-6.0)
1.0 Learner Name and Specialization
Stanley Thompson Jr.
Global Operations and Supply Chain Management
2.0 Identify potential topics of interest based upon your
specialization courses and practitioner experiences.
The purpose of this Modified Delphi project is to identify a set
of enterprise resource planning (ERP) practices for managing
supply chain risk as viewed by a nationwide panel of supply
chain management experts and to determine the extent to which
there is a consensus of opinion among these experts as to the
desirability, feasibility and importance of these practices.
3.0 Describe how you conducted web-based searches of
consultant websites, conferences, and other project-based
sources.
Using data analytics techniques likes content analysis approach
which basically employs the use of qualitative data analysis
process to identify the area of gaps particularly in the current
global operations of some of the biggest firms like Amazon and
Alibaba. Through qualitative analysis of the financial
statements of some of the companies like Amazon which largely
rely on the efficiency of their supply management to run their
global operations. I was able to identify gaps in the data that
needs improvement.

4.0 List the projects of interest identified through web-based
searches.
Integration of technology in the global operation supply chain
management to keep up with fast changing markets such as
invoice automation
Improvement of quality services for customers through
reduction in supply chain management complexity.
Another project is rebuilding work flow in manufacturing
through optimization of work scheduling.
Another project is complete transition to a new ERP platform
without interrupting current supply chain system
5.0 Identify two potential projects from the list above, for
further development.
Some of the project of interest generated from above list
includes; improvement in efficiency and reliability of the
supply chain network management for companies operating
globally through reduction in complexity of supply chain
networks.
Another project is effect of integrating technology and strategic
monitoring in improving service delivery in the supply chain
network. These two potential projects cover a relatively wider
list of problems normally encountered in global operation and
supply chain management such as maintaining quality of
services and goods sold to customers at all times (McAdam &
McCormack, 2001). Also avoiding delays and even risk
management in the supply chain management especially in
global operations.
6.0 Provide a rationale for the selection of the two projects for
further development. What makes these projects manageable
and feasible? What questions remain?
The main reason for selecting the two projects is because a
supply chain management rely on simplicity in operations
within the supply chain network so that delays may not arise
which is often costly on the side of the business as it reduces
profit margin as it increases risks for the business (Bozarth &
Handfield, 2008). Therefore further development of this project

will reduce complexity in the supply chain networks and
increase efficiency which many companies yarn for in global
operations.
The other topic of integration of technology and strategic
monitoring of supply chain network helps in ensuring that
convenience in management and cost reduction is achieved
through reducing certain costs of operations. This is because
technology plays a vital role in ensuring quality and efficiency
is achieved particularly in supply chain management.
References
Bozarth, C., & Handfield, R. (2008). Operations and supply
chain management. Strategies, 21, 22.
McAdam, R., & McCormack, D. (2001). Integrating business
processes for global alignment and supply chain
management. Business Process Management Journal.
Russell, R. S., & Taylor, B. W. (2014). Operations and supply
chain management. Hoboken, NJ: John Wiley & Sons.
1
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List of Figuresxi
SECTION 1. BUSINESS PROBLEM AND PROJECT SCOPE1
1.1 Introduction1
1.2 Capstone Topic1
1.2.1 Problem of Practice1
1.3 Purpose of the Project1
1.3.1. Project Need1
1.3.2 Project question(s)1
1.3.3. Project Justification1
1.3.4 Project Context: Company or Industry1
1.4. Doctor of Business Project Specifications1
1.4.1. Importance of the Project1
1.4.2. Approach for the Project1
1.5 Summary1
SECTION 2. LITERATURE REVIEW AND PROJECT PLAN2
2.1. Introduction2
2.1.1. Applied Framework2
2.2. Method for Discovering Literature2
2.2.1. Inclusion and Exclusion Criteria2
2.2.2. Search Strategy2
2.3. Review of Scholarly and Practitioner Literature2
2.3.1. Historic and Current Business Problem Trends2

2.3.2. Previous Efforts to Address the Problem2
2.4. Summary of Literature2
2.5. Recruitment2
2.6. Project Study Protocol2
2.6.1 Data Sources2
2.6.2. Data Collection2
2.6.3. Data Analysis Plan and Presentation2
2.6.4 Validity and Reliability/Trustworthiness2
2.6.5 Ethical Considerations2
2.7. Overview of the Project Study Plan3
2.8 Summary and Conclusion3
SECTION 3. RESULTS, DISUSSION, AND IMPLICATIONS4
3.1 Introduction4
3.2. Data Collection Results4
3.3. Data Analysis4
3.4 Contribution to Theory, the Literature, and the Practitioner
Knowledge Base4
3.5 Project Application and Recommendations4
3.6 Conclusion4
REFERENCES5
APPENDIX A. APPENDIX TITLE6
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vi
SECTION 1. BUSINESS PROBLEM AND PROJECT SCOPE1.1
Introduction1.2 Capstone Topic1.2.1 Problem of Practice1.3
Purpose of the Project1.3.1. Project Need 1.3.2 Project
question(s)
PQ1:
PQ2:1.3.3. Project Justification1.3.4 Project Context: Company
or Industry 1.4. Doctor of Business Project Specifications1.4.1.
Importance of the Project1.4.2. Approach for the Project1.5
Summary
[Note to learners: the project’s sections 1 to 1.5 will be revised
into past tense after you conduct the study and write Section 3.
Delete these instructions.].
SECTION 2. LITERATURE REVIEW AND PROJECT
PLAN2.1. Introduction
2.1.1. Applied Framework 2.2. Method for Discovering
Literature
2.2.1. Inclusion and Exclusion Criteria
2.2.2. Search Strategy2.3. Review of Scholarly and Practitioner
Literature2.3.1. Historic and Current Business Problem Trends
2.3.1.1. Potential additional section header.2.3.2. Previous

Efforts to Address the Problem2.4. Summary of Literature 2.5.
Recruitment 2.6. Project Study Protocol2.6.1 Data Sources
2.6.1.1.Preliminary sources of data expected. [Text starts here].
2.6.1.2.Instrumentation and data collection tools.2.6.2. Data
Collection 2.6.3. Data Analysis Plan and Presentation2.6.4
Validity and Reliability/Trustworthiness2.6.5 Ethical
Considerations2.7. Overview of the Project Study Plan2.8
Summary and Conclusion
[Note to learners: The project’s sections 1 to 2.13 will be
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Section 3. Delete.].
SECTION 3. RESULTS, DISUSSION, AND IMPLICATIONS3.1
Introduction3.2. Data Collection Results3.3. Data Analysis3.4
Contribution to Theory, the Literature, and the Practitioner
Knowledge Base3.5 Project Application and Recommendations
3.6 Conclusion
REFERENCES
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Essentials of Organizational BehaviorFourteenth EditionChapt.docx

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