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Chapter 1
What Is Organizational Behaviour?
The Field of Organizational Behaviour
•

Organizational behaviour investigates the influence that individuals, groups, and structure have
on behaviour within organizations
–

It studies three determinants of behaviour in organizations: individuals, groups and
structure

–

Its chief goal is to apply that knowledge toward improving an organization’s
effectiveness

OB Core Topics
• Motivation
• Leader behaviour and power
• Interpersonal communication
• Group structure and processes
• Attitude development and perception
• Change processes
• Conflict and negotiation
• Work design
Complementing Intuition with Systematic Study
•

Intuition: your “gut feeling” explanation of behaviour

•

Systematic study improves ability to accurately predict behaviour
–

Assumes behaviour is not random

–

Fundamental consistencies underlie behaviour

–

These can be identified and modified to reflect individual differences

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

Evidence-Based Management
•

Evidence-based management: Bases decisions on the best available scientific evidence
–
–

Complements intuition
Forces managers to become more scientific in their thinking

Big Data
•

Big data: the extensive use of statistical compilation and analysis
–

•

Identify persistent and predictive statistics

Using big data to manage human resources:
–

Define objectives, develop theories of causality, test the theories to see which employee
activities are relevant to the objectives
– For example, companies can measure absenteeism and turnover
Challenges and Opportunities for OB
• Responding to economic pressures
• Responding to globalization
• Managing workplace diversity
• Improving customer service
• Improving people skills
• Working in networked organizations
• Enhancing employee well-being at work
• Creating a positive work environment
• Improving ethical behaviour
Responding to Economic Pressures
•

Effective management can be just as hard, if not harder, in ‘good’ economic times as in ‘bad’
economic times

•

Good management can be the difference between survival and failure

Responding to Globalization
•

Increased foreign assignments

•

Working with people from different cultures

•

Overseeing movement of jobs to countries with low-cost labor

•

Adapting to differing cultural and regulatory norms

Managing Workforce Diversity
•

Workforce diversity: organizations are becoming a more heterogeneous mix of people in terms
of gender, age, race, ethnicity, ability and sexual orientation

Improving Customer Service and People Skills

•

The majority of employees in developed nations work in service jobs
–

•

They must know how to please their customers

People skills are essential to success in today’s organizations

Working in Networked Organizations
•

Managers must adapt their skills and communication styles to succeed in a networked
organization where not all employees sit in the same office
...


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

Improving Ethical Behaviour
•

Managers facing ethical dilemmas or ethical choices are required to identify right and wrong
conduct
–

•

This can be difficult in a global economy where different cultures approach decisions
from different perspectives

Companies promoting strong ethical missions:
–

Encourage employees to behave with integrity

–

Provide strong leadership that influence employee decisions to behave ethically



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