Chapter 1 Introduction

History of Organizational Behavior

Organizational Behavior - An interdisciplinary field dedicated to better
understanding and managing people at work

Human Relations Movement

o Inspired by legalization of union-management collective
bargaining in the US
o Hawthorne Studies - Supportive management (individuals
improve an aspect of their behavior in response to their

awareness of being observed)

The Quality Movement
o Total Quality Management (TQM) - 6 sigma
An organizational culture dedicated to training, continuous
improvement, and customer satisfaction
Employee-driven, customer-focused
o Basic Principles
Do it right the first time to eliminate costly rework
Listen to and learn from customers and employees
Make continuous improvement an everyday matter
Build teamwork, trust, and mutual respect
E-Business Revolution
o More and faster communication with others
o More potential for damage by unethical leaders
o Enables the existence of networks that go across traditional
organizational boundaries
Human and Social Capital
o Human Capital: the productive potential of an individuals
knowledge and actions
Example: Mitre, McLean, VA - pays university professors to
conduct a Masters in Systems Engineering program for
employees
o Social Capital: productive potential resulting from strong
relationships, goodwill, trust, and cooperative effort

Example: Cisco Systems, San Jose, CA - sponsors Nerd

lunches to discuss latest topics in technology

Management

Process of working with and through others to achieve organizational

objectives efficiently and ethically

Evolution of Managers

Management functions: planning, organizing, leading and controlling

Mintzbergs ten managerial roles
o Interpersonal: Figurehead, Leader, Liaison
o Informational: Monitor, Disseminator, Spokesperson
o Decisional: Entrepreneur, Disturbance handler, Resource

allocator Negotiator
Luthans Four types of managerial activity
o Traditional Management: Decision-making, planning, and
controlling.
o Communication: Exchanging routine information and
processing paperwork
o Human Resource Management: Motivating, disciplining,
managing conflict, staffing and training.
o Networking: Socializing, politicking, and interacting with others.
o Successful managers: promoted faster (Networking >
Communication)
o Effective managers: did their jobs well (Communication >

HRM)
Intuition and Systematic
o Intuition: Gut feelings, Individual observation, Commonsense
o Systematic: Looks at relationships, Scientific evidence, Predicts

behaviors
VUCA = volatile, uncertain, complex, ambiguous

Five Sources of OB Research Insights

o Laboratory study: Manipulation and measurement of variables

in contrived situations
o Field study: Examination of variables in real-life settings
o Sample survey: Questionnaire responses from a sample of
people
o Case Studies: In-depth analysis of single individual, group, or
organization
o Meta-analysis: Pools the results of many studies through

statistical procedure
OB Dependent Variables
o Productivity: Transforming inputs to outputs at lowest cost;
effectiveness (achievement of goals) and efficiency (meeting
goals at a low cost).
o Absenteeism: Failure to report to work a huge cost to
employers.
o Turnover: Voluntary and involuntary permanent withdrawal from
an organization.
o Deviant Workplace Behavior: Voluntary behavior that violates
significant organizational norms and thereby threatens the well-

being of the organization and/or any of its members.

OB Independent Variables
o Individual: Biographical characteristics, personality and
emotions, values and attitudes, ability, perception, motivation,
individual learning and individual decision making.
o Group: Communication, group decision-making, leadership and
trust, group structure, conflict, power and politics, and work
teams.
o Organization System: Organizational culture, human resource

policies and practices, and organizational structure and design.

Challenges
o Responding to Globalization, Managing Workforce Diversity
o Improving Customer Service, Improving People Skills
o Stimulating Innovation and Change, Coping with
Temporariness
o Working in Networked Organizations
o Helping Employees Balance Work-Life Conflicts
o Creating a Positive Work Environment, Improving Ethical
Behavior