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What is Organizational Behavior?

What is Organizational Behavior?. 1. Learning Goals. Definition of “organizational behavior” (OB) Primary outcomes in studies of OB Factors that affect the two primary OB outcomes Why firms that are good at OB tend to be more profitable Role of theory in the scientific method

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What is Organizational Behavior?

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  1. What is Organizational Behavior? 1

  2. Learning Goals • Definition of “organizational behavior” (OB) • Primary outcomes in studies of OB • Factors that affect the two primary OB outcomes • Why firms that are good at OB tend to be more profitable • Role of theory in the scientific method • Interpretation of correlations

  3. 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?

  4. The Best of Coworkers, the Worst of Coworkers Table 1-1

  5. Organizational Behavior Defined • Organizational behavior (OB) – the field of study devoted to understanding, explaining, and improving the attitudes and behaviors of individuals and groups in organizations. • Human resource management takes the theories and principles studied in OB and explores the application of those principles in organizations. • Strategic management focuses on the product choices and industry characteristics that affect an organization's profitability.

  6. OB Foundations • OB theories and concepts are drawn from a wide variety of disciplines • Industrial/organizational psychology • Social psychology • Sociology • Anthropology • Economics

  7. Integrative Model of Organizational Behavior • Individual Outcomes • Job performance (Chapter 2) • Organizational commitment (Chapter 3) • Individual Mechanisms • Job satisfaction (Chapter 4) • Motivation (Chapter 6) • Trust, justice, and ethics (Chapter 7) • Learning and decision making (Chapter 8)

  8. Integrative Model of Organizational Behavior, cont’d • Individual Characteristics • Personality and cultural values (Chapter 9) • Ability (Chapter 10) • Group Mechanisms • Teams: 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)

  9. Figure 1-1 Integrative Model of OB

  10. 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

  11. Discussion Question • Is it really the people that make some companies more profitable than others?

  12. What Makes a Resource Valuable? • Rare • Resources, 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

  13. Figure 1-2 What Makes a Resource Valuable?

  14. Research Evidence • Good OB practices were associated with better firm performance • Firms that valued OB had a 19% higher survival rate than firms that did not value OB • Good people comprise a valuable resource for companies • No “magic bullet” OB practice – no one thing that, in-and-of itself, can increase profitability

  15. Table 1-3 Some of the “100 Best Companies to Work For” in 2009

  16. Social Recognition & Job Performance • How often does social recognition lead to higher job performance? • Burger King study • Correlation between social recognition and job performance was .28 • Restaurants that received training in social recognition averaged 44 seconds of drive- through time nine months later versus 62 seconds for control group locations. • Correlation between social recognition and retention rates was .20 • Restaurants that received training in social recognition had a 16 percent better retention rate than the control group locations.

  17. Establishing Relationships • Making causal inferences— requires establishing three things • The two variables are correlated • The presumed cause precedes the presumed effect in time • No plausible alternative explanation exists

  18. Meta-analysis • The best way to test a theory is to conduct many studies, each of which is as different as possible from those that preceded it. • Meta-analysistakes all of the correlations found in studies of a particular relationship and calculates a weighted average (such that correlations based on studies with large samples have more weight than correlations based on studies with small samples). • .50 correlation is considered “strong,” a .30 correlation is considered “moderate,” and a .10 correlation is considered “weak.” • Forms the foundation for evidence-based management

  19. Takeaways • OB – devoted to understanding and explaining the attitudes and behaviors of individuals and groups in organizations. • Focuses on why individuals and groups in organizations act the way they do. • Primary outcomes - job performance and organizational commitment • Factors affecting these include: • Individual mechanisms • Individual characteristics • Group mechanisms • Organizational mechanisms.

  20. Takeaways, cont’d • Effective management of OB can help a company become more profitable because good people are a valuable resource • Rare • Hard to imitate • History that cannot be bought or copied • Make numerous small decisions that cannot be observed by competitors • Create socially complex resources such as culture, teamwork, trust, and reputation.

  21. Takeaways, cont’d • A theory is • A collection of assertions, verbal and symbolic • Specifies how and why variables are related • Specifies conditions in which these variables should (and should not) be related • Theories about organizational behavior • Built from a combination of interviews, observation, research reviews, and reflection • Form the beginning point for the scientific method • Inspire hypotheses that can be tested with data

  22. Takeaways, cont’d • 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 considered “strong” • A.30 correlation is considered “moderate” • A.10 correlation is considered “weak”

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