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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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